The abbreviation RTGS means for Real-Time Gross Settlements, and it refers to a platform that provides for the continual and real-time payout of financial transactions on a transaction-by-transaction basis (without netting). ‘Real Time’ refers to the execution of directives at the moment they are obtained; ‘Gross Settlement’ refers to the individual settlement of money transfer orders. The Reserve Bank of India created it in March 2004 to address customer requirements for a quick cash transfer mechanism.
Because of the essence of its feature, RTGS is the quickest means of moving money from one account or bank to another. If you need to wire funds to others in a hurry, you may use RTGS to accomplish so, with the amount being deducted from your bank and deposited to the recipient’s bank in the shortest amount of time.
It should be emphasized, however, that the transfer procedure must follow RBI banking hour requirements since the online procedure for both debit and credit in the different banks should be overseen by bank personnel.
Because RTGS money transfers occur in real-time, it is estimated that the funds would reach the recipient account within a few minutes. To ensure that transfers are completed as quickly as possible, the RBI has mandated that the beneficiary bank adheres to a specific timeframe.
They must execute the credit to the recipient account within half an hour of obtaining the money transfer request. They must also authenticate the action made promptly to the remitting bank, which will subsequently issue a notification SMS. As a result, it is reasonable to expect a debit/credit transaction to take somewhat more than half an hour.
Essential RTGS Requirements
Check all data, such as the account number, the IFSC code, and the spellings of the beneficiary’s name and details. The needed IFSC code may be obtained from your bank branch. The IFSC code will also be placed on the check leaf for the recipient.
Any mismatch might lead to delays or non-transfer and revert back of cash, all of which are extremely undesired, considering that the aim of RTGS is to transfer payments as quickly as possible.
It’s also important to check to see if the receiving branch supports RTGS. Despite the fact that over 100,000 locations of various banks in India are RTGS capable, however, not every branch may have this facility.
What are The RTGS Timings?
To maximize convenience and efficiency for the customers and encourage money transfers, the RBI has announced that the RTGS payment service would be accessible to consumers all around clock beginning December 1, 2020. This implies that RTGS is accessible 24 hours a day, 365 days a year. Previously, RTGS was accessible to users from 7 a.m. to 6 p.m. on all business days of the week, with the exception of the 2nd and 4th Saturdays of each month.