Understanding the charges associated with Real-Time Gross Settlement (RTGS) transfers is essential when conducting high-value transactions. By knowing the fees, you can make informed decisions and ensure cost-effective and efficient fund transfers. This article will discuss the current RTGS fees applicable in 2024, providing an overview of the cost structure for different transaction amounts.
RTGS Charges 2024
The fees associated with RTGS transactions are called RTGS charges. As of 2024, the Reserve Bank of India (RBI) does not impose any processing fee for RTGS transfers but levies a service fee on the sender. The beneficiary is not required to pay any charges on inward transactions.
The current fee structure for RTGS transfers is as follows:
- For transaction amounts between Rs 2 lakh and INR 5 lakh, the service fee does not exceed Rs 24.50 plus taxes.
- For transaction amounts of Rs 5 lakh and above, the service fee does not exceed INR 49.50 plus taxes.
It’s worth noting that the RBI sets these maximum charges, and banks can charge lower fees than those mandated.
What Are the Applicable Fees for RTGS Transactions?
Here is the detailed breakdown of the applicable fees on RTGS transactions.
|
Transaction Amount |
Transaction Charges |
|
Less than 2,00,000 |
Nil |
|
Rs 2,00,000 to Rs 5,00,000 |
Rs 24.50 + GST |
|
Above Rs 5,00,000 but less than Rs 10,00,000 |
Rs 49.50 + GST
|
In addition to service fees, some banks may charge other fees, such as processing or convenience. These additional fees vary across banks and should be considered while making high-value transactions.
RTGS Charges For Top Indian Banks?
It is important to be aware of RTGS payment charges before initiating a transaction request. Here is a breakdown of RTGS charges for some of the top Indian banks:
HDFC Bank RTGS Charges
HDFC Bank does not levy any charges for online RTGS transactions, irrespective of the transaction amount. However, charges apply for branch-based RTGS transactions:
-
A flat fee of Rs 15 plus GST is levied.
Axis Bank RTGS Charges
Like HDFC Bank, Axis Bank also does not levy charges for online RTGS transactions. However, for branch-based RTGS transactions:
-
Transactions between Rs 2 lakh and Rs 5 lakh incur a fee of Rs 25 plus GST.
-
Transactions above Rs 5 lakh attract a fee of ₹50 plus GST.
RBL Bank RTGS Charges
RBL Bank also does not charge any fees for online RTGS transactions. For transactions at branches:
-
Transactions between Rs 2 lakh and Rs 5 lakh are subject to a fee of Rs 20 plus GST.
-
Transactions above Rs 5 lakh incur a fee of Rs 40 plus GST.
ICICI Bank RTGS Charges
ICICI Bank offers free online RTGS transactions without any charges. However, for branch-based transactions:
- Transactions between Rs 2 lakh and Rs 5 lakh attract a fee of Rs 20 plus GST.
- Transactions above Rs 5 lakh have a fee of Rs 45 plus GST.
Why Choose RTGS for High-Value Fund Transfers?
RTGS is an ideal option for high-value fund transfers due to several reasons. Firstly, RTGS ensures real-time processing, meaning the funds are transferred instantly and settled in the recipient’s account within two hours. This makes it highly suitable for time-sensitive transactions, such as property deals or urgent payments.
Secondly, RTGS provides enhanced security features that protect the transfer of large sums of money. The payment system operates on a gross settlement basis, which means each transaction is settled individually without netting off against other transactions. This minimises the risk of fraud or unauthorised access to funds.
Lastly, RTGS is a reliable method for high-value transfers as it is facilitated by the Reserve Bank of India (RBI). The central bank oversees and regulates all RTGS transactions to ensure smooth and efficient processing.
Tips for Cost-Effective RTGS Transactions
To minimise RTGS fund transfer charges, consider the following tips:
-
- Compare Fees: Different banks may have varying charges for RTGS transfers. Research and compare the fees offered by various banks to find a cost-effective option.
- Transaction Amount: Some banks offer discounted or waived charges for higher transaction amounts. If possible, consolidate multiple smaller transfers into a single, larger transaction to take advantage of these benefits.
- Timings: Check the RTGS timing restrictions imposed by your bank. Conducting RTGS transfers during non-peak hours or specific time slots may result in lower charges.
- Preferred Banking Solutions: Some banks provide preferential pricing on their bundled banking solutions, which may include reduced charges or even free RTGS transactions.
Frequently Asked Questions
Is RTGS Transfer Free?
RTGS transfers are generally free for online transactions, but some banks may charge fees for branch-based transactions.
What Are The Charges For RTGS As Per RBI Guidelines?
The RBI sets maximum charges for RTGS: ₹24.50 + GST for transactions between Rs 2-5 lakh and ₹49.50 + GST for transactions above Rs 5 lakh. Banks can charge lower fees.
How Are RTGS Charges Calculated?
RTGS charges are generally calculated based on the slab system, where different slabs have different charges associated with them. For example, transferring up to ₹5 lakh may have a lower charge compared to transferring between ₹5 lakh and ₹10 lakh.
What Is The Charge Of RTGS In SBI?
The charges for RTGS in the State Bank of India (SBI) can vary depending on factors such as the amount being transferred and the type of account. It is recommended to refer to SBI’s official website or contact their customer support for the most accurate and up-to-date information on RTGS charges.
How do RTGS charges compare with fees associated with other electronic fund transfer methods?
RTGS charges tend to be higher than fees associated with other electronic fund transfer methods like NEFT (National Electronic Funds Transfer). However, RTGS offers real-time settlement and is suitable for high-value transactions requiring immediate funds transfer.
Can the timing of an RTGS transaction influence the applicable charges?
Some banks may offer lower charges for RTGS transactions done during non-peak hours.
