Five things to know about RTGS

Here’s how Real-Time Gross Settlement (RTGS) works

Last week, the RBI increased the timing for real-time gross settlement (RTGS) from 4:30pm to 6pm. Here’s how RTGS works:

Last week, the RBI increased the timing for real-time gross settlement from 4:30pm to 6pm. (HT File Photo (representative image))

1 What it is: It is a fund transfer service where the settlement of fund happens in real time—at the same time you initiate the process. Once you make the payment, it is irrevocable.

2 Transaction amount limit: RTGS is used for large-value transactions. The minimum amount you can send is ₹2 lakh. According to RBI, there is no maximum limit. However, some banks cap it at ₹10 lakh per day.

3 Cut-off time for transaction: The cut-off time has been extended from 4:30pm to 6pm, effective June 1. It is open for business from 8am. Inter-bank cut-off is 7:45 pm.

4 Cost involved: The transaction fee varies based on the time of transaction. Transaction done between 8am and 11am will cost you nothing. Any transaction after 11am till the cut-off time will vary between ₹2- ₹10.

5 Advance scheduling: RTGS transactions can be scheduled three working days in advance. You can pay for transactions such as cash management transfer, hedging, interest and tax payment.