Seeking large-scale banking transactions in real-time? Adopt the Real-time Gross Settlement (RTGS), the fastest way of transferring a bulk amount. RTGS fund transfers have certainly changed the dynamics, especially for businesses where the speed of money transfer is premium. Many business enterprises engaged in manufacturing and trading, in particular, require bulk transactions to sustain their operations. The minimum amount needed to transfer via RTGS is INR 2 lakh.

With the Reserve Bank of India (RBI) overseeing secure RTGS transactions governed by a two-factor authentication, businesses can feel relieved and continue to make bulk transactions. However, RTGS transactions are not meant solely for businesses. Even retail customers can enjoy the RTGS fund transfer facility. The best part is that the service is available 24x7, making instant RTGS fund transfers possible. Let's know about the usual RTGS time taken across India's banking landscape.

What is RTGS?

RTGS is the fastest way to make large-value transactions in real-time. There are batches like in the case of NEFT transactions. So, the fund transfer transaction is instant, helping businesses and retail customers with the speed they want in payments.

How Much Time Does RTGS Take to Complete?

While the funds settlement takes place instantly, there's a need to activate beneficiary account details which can take somewhere 30 minutes to an hour. Post the successful activation, users can transfer funds regardless of whether on working days or banking holidays using Internet banking or by visiting the nearest bank branch. A funds transfer message comes to your mobile number upon a successful transaction. However, due to network loads during peak hours, there may be a delay in transaction processing. The exact time taken for RTGS transfers depends on all these factors.

RTGS Timings in India

The RBI guidelines mandate banks to allow RTGS transactions 24x7, including the ones initiated during bank holidays, through Internet banking and mobile banking. However, those visiting bank branches may have to contend with a cut-off time, which is nothing but the usual banking hours. From Monday to Friday, the RTGS payment transfer time can be between 9.30 a.m.-6.30 p.m. On working Saturdays, the operating hours can be around 9.30 a.m.-4.30 p.m. The second and fourth Saturdays of the month, along with bank holidays as per the Reserve Bank of India will not have any RTGS transaction through a bank branch.

Steps Involved in RTGS Transfers

There are three ways by which you can make RTGS funds transfer - Internet Banking, Mobile App and Branch.

How to Make Real-time Gross Settlement Transactions via Internet Banking?

• Log in to Internet Banking.

• Go to 'Funds Transfer'.

• Click on 'RTGS'.

• Add the beneficiary bank by entering the beneficiary account number and Indian Financial System Code (IFSC).

• Confirm the details before submitting the request for the beneficiary's account addition.

• The verification process will go through for around 30 minutes to an hour.

• Upon successful verification, the beneficiary account details will be registered for online RTGS transactions.

• You can thus transfer the amount to the beneficiary bank account.

Steps for Mobile App-based RTGS Transactions

• Download the mobile app of a particular bank online.

• Go to 'Bank Account'.

• Select the fund transfer option under RTGS.

• Add the beneficiary by entering the account number and IFSC code.

• Verify the details carefully before submitting for beneficiary addition.

• Subsequently, the beneficiary verification process will start and continue 30 minutes to an hour.

• Once the verification becomes successful, the account will be added to the list of beneficiaries.

• You can find it on the app.

• Now, you can transfer to the beneficiary account.

RTGS Transactions Through a Bank Branch

• Visit the nearest bank branch and ask for an RTGS application form.

• Fill in the beneficiary bank branch details such as the account number, IFSC code, etc.

• Submit cash or cheque containing the RTGS transfer amount to the bank official.

• The official will check the details thoroughly before proceeding with your transaction.

• Once the transfer is successful, you will receive a notification on your registered email ID and mobile number with the bank.

• The beneficiary will also receive a message of successful RTGS fund transfer.

RTGS Settlement Time vs Processing Time

The addition of the beneficiary for fund transfer through RTGS can take around 30 minutes to an hour. Upon the beneficiary's activation, the transfer is instant. In case there are high network loads, there can be delays in credit. RTGS done through branches can witness delays if the bank official receives many applications at a time.

RTGS Payment Timing Scenarios

RTGS transactions initiated through Internet banking and mobile banking will see instant credits upon the successful addition of beneficiary account number and IFSC code.

When initiated through a bank branch, the transfer may take time as many customers can submit applications at one point. Also, bank branches remain closed on 2nd and fourth Saturday of the month, besides public holidays.

Comparison Table: RTGS Time vs. Other Payment Modes

Common Issues Affecting RTGS Transfers

Incorrect Beneficiary Details

It's important to furnish correct information about the beneficiary to whom you intend to transfer funds through RTGS. However, people do err and, as a result, the beneficiary bank activation fails, resulting in no transfers and the hassles that follow. So before proceeding ahead, whether online or at a bank branch, check the details thoroughly. It will help you avoid undue hassles.

Bank Server Downtime or Maintenance

Banks notify customers of the server's downtime or maintenance. During such times, you cannot transfer funds. However, such activities usually persist during non-banking hours. At the same time, they don't happen frequently.

Delays Due to Anti-fraud Checks

Financial fraud does take place and comes in various forms. So, authorities remain vigilant, especially large-value transactions, to see whether they are genuine or done with the intention to commit fraud.

8. Bank RTGS Timings

Benefits of RTGS

Fast Settlement

The best part about the RTGS system is that they are settled fast. All you need to do is activate beneficiary branches such as account numbers, IFSC codes, etc. The beneficiary activation can take 30 minutes to an hour. Once the beneficiary is added successfully, you can remit the amount instantly. The minimum amount required for RTGS is INR 2 lakh, while the maximum limit norms rest on banks. Some banks don't keep a maximum limit, while some do. Therefore, read the funds transfer instructions carefully before proceeding further.

Secure

Real-time Gross Settlement transactions are highly secure with each step being authenticated. The process involves scrutinising details such as the beneficiary customer account number, branch, IFSC code, etc. The moment the credit to the beneficiary account is successful, each party involved in the transaction (including the receiving bank branch and sending bank branch) will be notified.

Availability

The online RTGS payment service is available 24x7, including weekends and public holidays. On the other hand, transactions initiated through branches will be available during operational banking hours. Banking hours typically range from 9.30 a.m.-4.00 p.m. from Monday to Saturday, except on 2nd and 4th Saturday of a month. At the same time, banks remain closed on public holidays. So, on these days, the real-time gross settlement transactions can't take place through bank branches.

Frequently Asked Questions (FAQs)

How much time does an RTGS transfer take?

The transfer is instant upon beneficiary addition. Adding the beneficiary can take around 30 minutes to an hour.

Is RTGS faster than NEFT?

Yes, RTGS is faster than NEFT. RTGS transactions are executed in real-time, whereas NEFT transactions are executed on a half-hourly batch processing system.

Are RTGS services available on bank holidays?

Yes, Real-time Gross Settlement services are available on bank holidays when initiated through online banking channels. However, you cannot transfer funds via RTGS on bank holidays through bank branches.

What are the cut-off timings for RTGS in Indian banks?

Online RTGS transfers are available 24x7. However, branch-based transactions are executed during the banking hours from Monday to Saturday, except on the 2nd and 4th Saturday of a month.

Why is my RTGS transfer delayed?

RTGS transfers can be delayed on account of inaccurate beneficiary details, server issues, too many applications at a time (when initiated through the branch), etc.

How can I track my RTGS transaction status?

Banks offer a Unique Transaction Number for RTGS transactions. You can use it to track RTGS transaction status on net banking, mobile banking, or branch banking.

What are the transaction charges for RTGS transfers?

As per the RBI guidelines, online RTGS transfers are free of any charges. However, branch-based transactions are chargeable at around INR 15-50 plus Goods and Services Tax (GST).

What details are required for an RTGS transfer?

You need details such as the beneficiary's name, bank account number and IFSC code for RTGS transfers.