Wednesday 17 April 2013

What is RTGS

RTGS: Real time gross settlement 
It's a fund transfer mechanism that enables money to move from one bank to another on a real time and gross basis. Simply, real time means the transaction is settled instantly without any waiting period and gross means that it is not bunched with any other transaction. 

You can transfer a minimum of Rs1 lakh through RTGS, though there is no upper ceiling. The bank will charge you Rs25- Rs50 for an outward RTGS transactions and inward transactions are free. 

RTGS is the faster way of money transfer facility available through secure banking channels in India. 
But not all branches in India RTGS is enabled. Visit the Reserve Bank of India's (RBI) website for a list of branches where you will get this facility.

So along with the cheque the RTGS form is filled up and submitted to the counter.
After verifying, money is transferred on real time and gross basis.

This facility would be very much helpful during an emergency situation when an ill child studying in another city or a parent in an emergency situation where they need money at once. You would be able to use this facility if you use Internet banking as a channel. It is mostly used by high networth individuals and businessmen, who have atleast Rs l lakh to be transferred business associates or clients.


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