Money transferring has become a lot easier with technology becoming a major part of our day to day lives. While there used to be a time, when people would deliver cash personally for the fear of a middle man interrupting
the transaction, nowadays life has become simpler and transactions much easier with RTGS or Real Time Gross Settlement.
Real-time gross settlement systems (RTGS) is a funds transfer system where money transfer takes place from one bank to another on a "real time" basis and "gross" basis. Settlement in the "real time" means that the
transaction happens almost immediately. "Gross settlement" means the transaction is settled on one to one basis unlike NEFT where the transaction happens in bulk at a given point in time during the day. Once
the transaction is processed, they are irrevocable. The minimum amount that needs to be remitted through NEFT is 2 lakhs.
RTGS is used for transactions which are very high in value and need to be cleared immediately. There are no charges for RTGS. The bank that receives the money has to credit the amount in the account within 30 minutes
of receiving it. The RTGS service window for transactions is available to banks from 8.00 hours to 18:00 hours on week days and from 8.00 hours to 18:00 hours on Saturdays for settlement at from RBI’s
end. However, the timings that the banks follow may vary depending on the customer timings of the bank branches.