RTGS

Full form: Real Time Gross Settlement

Banking

RTGS is India's fastest interbank fund transfer system for large-value transactions. Minimum Rs 2 lakh. Settlement happens in real time on a gross (one-to-one) basis -- not in batches like NEFT. Available 24x7 since December 2020. Free of charge at most banks.

In detail

RTGS vs NEFT vs IMPS:nRTGS: Rs 2L minimum, real-time, for large amountsnNEFT: no minimum, half-hourly batches (24x7), for any amountnIMPS: no minimum, real-time, up to Rs 5L typicallynUPI: up to Rs 1-5L, instant, for everyday transfersnnRTGS use cases: property registration payments, business payments, inter-corporate transfers, large investment purchases. Banks process RTGS through RBI's central payment infrastructure.

Real-life example

🇮🇳 India example

Rajiv is buying a flat and needs to pay Rs 75L to the builder. He uses RTGS -- money reaches builder's account within 30 minutes on the same working day. A NEFT transfer for Rs 75L would also work now (24x7) but RTGS is the traditional choice for very large, time-sensitive transfers.

Frequently asked questions

Is RTGS available on bank holidays? ▼

Yes, since December 2020 RTGS is available 24x7 including holidays. However, receiving bank's processing may take slightly longer on holidays as treasury operations are not fully staffed.