In the world of banking, there are many ways that you can transfer funds through electronic means. RTGS is a convenient way to do this. RTGS enables individual fund transfer, and doesn’t permit fund transfers to be made in batches. This form of payment is used for credit card payment.
About RTGS Transactions
The RTGS full form is Real-Time Gross Settlement and this form of payment allows the instant transfer of funds. Since it is overlooked by the Reserve Bank of India, it is a secure and reliable way of money transfer. Here are some features and benefits that RTGS provides:
- Fund transfer is executed electronically, from one bank account to another.
- Transfers are done in real time and by way of online means.
- RTGS is a safe way to conduct fund transfers.
- RTGS is used for transactions of high value, as the RTGS full form, Real-Time Gross Settlement, suggests. The minimum you are required to transfer is Rs. 2 lakhs.
- Fees/charges are dependent on the amount to be transferred.
- RTGS timings for transfer are fixed by individual banks and this may vary from bank to bank, but RTGS transfer time is instant.
- RTGS can be done online, through net banking. Another way to do RTGS is offline, via your bank branch.
RTGS charges are not applicable when you receive funds. Nonetheless, if you initiate a transfer, certain charges apply. Furthermore, with the aim of making RTGS a popular online process and encouraging its use, the Reserve Bank of India has waived all fees, including processing fees, for any RTGS transactions done online. Offline transfers may still incur a processing fee and additionally, the applicable GST. For instance, for offline transactions between Rs. 2 lakhs-Rs. 5 lakhs, at HDFC Bank, a fee of Rs. 25 plus GST is levied. These are the same charges levied by Axis Bank too.
How to Transfer Money Using RTGS
The offline process of RTGS requires that you visit your bank branch. You need to fill in a form with the details of your account and the beneficiary’s and submit it to a bank executive. The transaction will go through after this. Online transfers are easy to execute and you can log in to your bank’s website to do this. RTGS transfer time is saved and so is effort, if you execute online transfers in the following steps:
- Log on to your bank’s portal and first add a beneficiary.
- Under the heading ‘Funds transfer’ add a beneficiary.
- Add the details of the beneficiary, including the account number, name, bank and branch and IFSC code. Then click on ‘Add’.
- An OTP will be sent to you, and you can confirm the action by entering this OTP.
- Then, under ‘Funds transfer’, you can select the beneficiary and add details like amount to be debited, etc.
- Agree to abide by terms and conditions, and then confirm this.
Funds will be transferred to the beneficiary account instantly. In case of a technical hitch, this may take a few minutes at most. You and the beneficiary will be notified once the transaction is completed.
RTGS is an efficient way to transfer funds when you have large amounts to transact. At Finserv MARKETS, you can learn about funds transfers and find more ways to make online transactions easy.