RTGS (Real Time Gross Settlement System)
What is RTGS System?
RTGS system is a payment platform where instructions between Banks are processed and settled individually and continuously through the day. It is an Electronic clearing system in which both processing and final settlement happen real time. Funds can be transferred or received to/from any branch of any bank in India which is RTGS member, within two hours. In fact payment is effected almost instantaneously. By availing the benefits of RTGS system, one can manage the funds more efficiently and effectively.
Present Clearing System v/s RTGS System
In the present clearing system, person receiving the payment has to present the instruments to his bank and his bank has to present the instruments in the local clearing or to send outstation instruments to the concerned station/place for clearance. Payment will be effected within one day for High Value Clearing and within few days for outstation instruments. Physical instruments are to be presented within specified time limit and final settlement takes place only after return clearing.
In RTGS System, person making the payment is remitting funds electronically through his Bank and there is no physical movement of instrument. Transactions are settled on a continuous basis and settlement is immediate, final and irrevocable. Beneficiary receives the credit within few hours. RTGS is a safe, secure, sound and efficient payment and settlement system, both for local as well as outstation financial transactions. It helps to manage working capital more efficiently.
Procedure for RTGS System
For payment through RTGS system, the Remitter (Customer) is required to submit the “RTGS Funds transfer application form” along with amount to be transferred to any of our branches. The Remitter shall be responsible for the accuracy of particulars given in RTGS application form. You can transferfunds to any bank branch any where in India, Also from head office to abroad, If it is participating in RTGS.
Details Required for Sending Payments through RTGS
Beneficiary (receiver, to whom you want to make payment) Details:
- Beneficiary Name
- Beneficiary Account Number
- Beneficiary Bank Name
- Beneficiary Branch Name
- Beneficiary Bank IFSC
- Accounts Type – Savings/Current/Cash Credit
- Beneficiary Mobile Number
NEFT & RTGS Charges