RTGS stands for Real Time Gross Settlement. This is a type of fund settlement process that is used for bank transfers that are high-value. This is because the minimum transaction amount is Rs 2 lakh. Once these settlements are made, the amount transferred is irrevocable. RTGS payments are generally cleared immediately and are primarily organised with the central bank of the country. These settlements take place quickly, in real time.

One of the features of RTGS that make it particularly relevant for modern consumers is that the transactions can be initiated through net-banking. In order to do so, consumers require the beneficiary’s information so that the transfer can be made to the correct individual. Some of this information includes:

  • The name of the individual or beneficiary
  • The beneficiary’s bank IFSC code
  • The beneficiary’s account number
  • The beneficiary’s bank branch and bank name

Interestingly, consumers can also schedule their RTGS payments a few days in advance. This makes it extremely convenient for employers and organizations to transfer large funds to their high-value employees.

How does RTGS take place?

Real Time Gross Settlement systems are essentially maintained by the Reserve Bank of India. This means that the transactions are highly secure and one does not have to worry about settlement risks. Of course, if the sender does not enter the correct information regarding the beneficiary, they can encounter problems with their payments.

In order to make RTGS payments, you must:

  • Log into your net banking account by entering the relevant details
  • Select the Funds Transfer Option on your homepage
  • Select the RTGS option from the options that you may see
  • Enter beneficiary details accurately
  • Review the details you have entered to eliminate any scope of error
  • Click the submit button

The funds are generally credited on an immediate basis. You may receive a text message on your registered mobile number confirming the transaction. Your beneficiary may also receive a text message confirming whether the transaction has taken place.

What are the main features of an RTGS transaction?

Before using any transaction mode, it is essential to understand its basic features. This can help you know exactly what to expect from the transaction, and what steps you must take to ensure its safety (if required). Some of the main features of RTGS transactions are as follows:

  • The fund transfer occurs in real time
  • The transfer can occur online
  • RTGS is predominantly used for high-value transactions
  • The system is highly reliable and is powered by the RBI
  • It offers an immediate clearing
  • The process follows a one-to-one basis for crediting the funds
  • One can execute these transactions on an individual basis
  • Organizations can execute these transactions on a gross basis

Are there any fees or charges for using RTGS?

None! As a means to promote digital transactions, RBI has scrapped transaction fees for all RTGS transactions, irrespective of your bank.

Are there any timings associated with RTGS?

Earlier, RTGS transactions could take place only within certain banking hours. During the weekdays, these transactions can occur anytime between 9:00 am and 4:30 pm. During the weekends, RTGS  transaction Timing is anytime between 9:00 am and 2:00 pm.

But in October 2020, RBI announced that starting December 2020, RTGS transactions will be allowed 24×7 on all days.

However, considering that RTGS is not intended for daily payments the way UPI is, this is not a very big problem.

Another essential factor to consider is that not everyone can make RTGS payments. One must have an account with a bank that is RTGS-enabled in order to make such payments.


RTGS is a convenient transaction mode that is ideal for high-value transactions. As it does not have an upper limit, individuals can use this form of payment for large investments and payments quite easily. Having said that, if one wants the ease of making payments at any given time, then perhaps RTGS is not the way to go unless you can be absolutely sure that all your payment needs can be taken care of within the banking hours.


Saurin heads Content at Razorpay. He's a fintech enthusiast who enjoys long walks in the Bangalore weather. He says he's a "cool dad" (those are his words, his son has refused to comment). He writes primarily on personal and business finance, and a little bit on marketing.

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