{"id":713,"date":"2019-04-17T15:29:18","date_gmt":"2019-04-17T09:59:18","guid":{"rendered":"https:\/\/rzplearn.com\/?p=713"},"modified":"2025-01-07T12:48:35","modified_gmt":"2025-01-07T07:18:35","slug":"features-of-rtgs","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/features-of-rtgs\/","title":{"rendered":"What Are the Features of RTGS?"},"content":{"rendered":"\r\n<p><a href=\"https:\/\/razorpay.com\/learn\/rtgs\/\">Real Time Gross Settlement<\/a>, abbreviated as RTGS, is a fund transfer method usually opted for when the amount to be transferred is very high and the transfer is required to be completed within the same day. RTGS is predominantly used for high-value transactions. This is mainly because the minimum amount that can be transferred via this mode is Rs 2 lakh.<\/p>\r\n\r\n\r\n\r\n<p>Consumers must have the following information to successfully <a href=\"https:\/\/razorpay.com\/learn\/what-is-rtgs\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"make an RTGS transaction (opens in a new tab)\">make an RTGS transaction<\/a>:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>The amount must be transferred in rupees<\/li>\r\n<li>Name of the beneficiary or payee as stated in the bank account<\/li>\r\n<li><a href=\"https:\/\/razorpay.com\/blog\/decoding-ifsc-codes-meaning-importance\/\">IFSC code<\/a> of the payee\/beneficiary<\/li>\r\n<li>Account number of the payee\/beneficiary<\/li>\r\n<li>Name of beneficiary\u2019s bank and bank branch<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Features of RTGS<\/h2>\r\n\r\n\r\n\r\n<p>Before making an RTGS transaction, you must be aware of some of its features so that you can make informed decisions.<\/p>\r\n\r\n\r\n\r\n<ol class=\"wp-block-list\">\r\n<li><strong>Real-time online fund transfer<\/strong> \u00e2\u20ac\u201c The \u00e2\u20ac\u0153RT\u00e2\u20ac\u009d in RTGS stands for \u00e2\u20ac\u02dcreal-time\u2019. This means that it the most reliable fund transfer method when the transfer must be made immediately, or on the same day. In other words, the transactions take place without any delays or long processing periods<\/li>\r\n<li><strong>Used for high-value transactions<\/strong> \u00e2\u20ac\u201c The most important feature of the RTGS fund transfer method is that it is used for high-value transactions. The minimum amount that can be transferred using this method is Rs 2 Lakhs. This method is the most reliable and safest choice among consumers who must make such transactions<\/li>\r\n<li><strong>Safe and secure, with RBI\u2019s backing<\/strong> \u00e2\u20ac\u201c This payment method is preferred for high-value transactions due to multiple reasons &#8211; such as quick service and minimal <a href=\"https:\/\/razorpay.com\/learn\/what-are-transaction-costs\/\">transaction costs<\/a>. However, the feature that consumers find the most alluring is that it is one of the safest methods of fund transfer available today. What makes this method highly secure and reliable is that it is backed by India\u2019s Central Bank, i.e. the Reserve Bank of India (RBI). This ensures that it is 100% legal and the server that takes care of these transfers is strong and safe from even the most advanced hacking technologies<\/li>\r\n<li><strong>Immediate clearing<\/strong> \u00e2\u20ac\u201c RTGS is a quick settlement method and immediately clears the payment from the consumer\u2019s end, taking up to 2 hours to reflect at the beneficiary\u2019s end. The payment is cleared immediately and is irrevocable, making it completely settled as soon as the consumer completes the transaction on his end<\/li>\r\n<li><strong>Funds credited on a gross and one-on-one basis<\/strong> \u00e2\u20ac\u201c This is an important feature of RTGS. The funds in this method of fund transfer are credited on a one-on-one basis, which means that the fund transfer takes place only between the two parties involved, i.e. the consumer (giver) and the beneficiary. No third party is involved and the payment, when released by the consumer, reaches directly to the beneficiary on a \u00e2\u20ac\u02dcone-on-one\u2019 basis without bundling or\u00a0netting\u00a0with any other transaction.<\/li>\r\n<li><strong>RTGS operates 24&#215;7<\/strong>\u201c Governed by RBI, the fund transfer method will be available 24&#215;7 on all days from December 2020 onwards.<\/li>\r\n<\/ol>\r\n<h2>Benefits of RTGS<\/h2>\r\n<p>RTGS offers many advantages over any other fund transfer method such as:<\/p>\r\n<ul>\r\n<li>\r\n<p>It is a safe and secure system for funds transfer<\/p>\r\n<\/li>\r\n<li>\r\n<p>These transactions have no amount cap<\/p>\r\n<\/li>\r\n<li>\r\n<p>The system is available on all days on a 24x7x365 basis. There is a real-time transfer of funds to the beneficiary account<\/p>\r\n<\/li>\r\n<li>\r\n<p>There is no requirement for a physical <a href=\"https:\/\/razorpay.com\/learn\/what-is-cheque\/\">cheque<\/a> or a demand draft for the remitter<\/p>\r\n<\/li>\r\n<li>\r\n<p>The beneficiary is not required to visit a bank branch for depositing the paper instruments<\/p>\r\n<\/li>\r\n<li>\r\n<p>The beneficiary need not be apprehensive about loss\/theft of physical instruments or the likelihood of fraudulent encashment<\/p>\r\n<\/li>\r\n<li>\r\n<p>The remitter can initiate the remittances from his \/ her home\/place of work using internet banking if his \/ her bank offers such a service<\/p>\r\n<\/li>\r\n<li>\r\n<p>The transaction charges have been capped by RBI<\/p>\r\n<\/li>\r\n<li>\r\n<p>The transaction has legal backing<\/p>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">What are the RTGS transaction fees that the sender must bear?<\/h2>\r\n\r\n\r\n\r\n<p>None! As a means to promote digital transactions, RBI has scrapped transaction fees for all RTGS transactions, irrespective of your bank.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\r\n\r\n\r\n\r\n<p>RTGS is one of the most reliable fund transfer methods available today, with most people choosing it for its real-time fund transfers without any long waiting periods or delays. The payment method is often compared to <a href=\"https:\/\/razorpay.com\/learn\/difference-between-neft-and-rtgs\/\">NEFT and RTGS<\/a>, however, RTGS is generally preferred whenever it comes to making high-value transactions.<\/p>\r\n<p>Related Read: <a href=\"https:\/\/razorpay.com\/learn\/third-party-transactions-transfer-neft-rtgs-imps\/\">What is TPT Transfer in Banking? &#8211; Methods, Limit &amp; Fees<\/a><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>RTGS is one of the most reliable fund transfer methods available today, with most people choosing it for its real-time fund transfers.<\/p>\n","protected":false},"author":151156456,"featured_media":11370,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1387],"tags":[],"class_list":{"0":"post-713","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payments"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156456"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=713"}],"version-history":[{"count":11,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/713\/revisions"}],"predecessor-version":[{"id":15335,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/713\/revisions\/15335"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/11370"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}