Banking & Payments

What is RTGS (Real Time Gross Settlement)?

A continuous, real-time payment system operated by RBI for large-value interbank transfers with a minimum transaction amount of ₹2,00,000, available 24/7.

How It Works

RTGS is India's premier large-value payment system operated by the Reserve Bank of India. Each transaction is settled individually in real-time (not batched like NEFT was historically). It's designed for high-value transfers — the minimum amount is ₹2 lakh with no maximum limit. RTGS became available 24/7/365 from December 2020. Settlement is final and irrevocable — once processed, it cannot be reversed. Banks charge nominal fees for RTGS transactions: typically ₹25-50 for amounts above ₹5 lakh.

Real-World Example

A company transfers ₹15,00,000 to a supplier via RTGS at 3 PM. The amount reaches the supplier's bank account within seconds, confirmed by UTR (Unique Transaction Reference) number. The transfer is irrevocable once processed.

Why It Matters

1

Ensures accurate financial reporting and record-keeping

2

Helps maintain regulatory and tax compliance

3

Enables better-informed business decisions

4

Improves operational efficiency and cash flow management

Frequently Asked Questions

What is the minimum amount for RTGS?

₹2,00,000 (₹2 lakh). For amounts below this, use NEFT, IMPS, or UPI. There is no maximum limit for RTGS, making it the preferred method for very large transactions.

Is RTGS available on holidays?

Yes. Since December 14, 2020, RTGS operates 24/7/365, including Sundays and bank holidays. This was a major reform by RBI to enable round-the-clock large-value payments.

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