RTGS transfers India: All you need to know

RTGS is a real-time digital money transfer service provided by the Reserve Bank of India (RBI) for individuals or firms to send money to another bank in the country. So if you need to quickly provide payment, or send money to a friend, family, landlord, or anyone across India, you can use the RTGS system. It is done digitally, so you can complete the transfer from either your phone or computer through your current Indian bank. Or you can walk-in to any one of the more than 110,000 bank branches that are RTGS enabled.¹

While RTGS is fast and secure, it does have some drawbacks. It is only suited for large value transactions and is limited by working hours. Plus it is only available to banking clients in India to send money within the country. Learn more about what an RTGS transfer is and when it might be a good fit for you to use. And if you do like fast, low cost and secure transfers, try out Wise to send money to India.

What is the full-form of RTGS

The full form of RTGS is Real Time Gross Settlement. It means that when a funds transfer comes through on RTGS, the fund settlements are done on a continuous and real-time settlement basis. This differs from the other type of electronic transfer, National Electronic Funds Transfer (NEFT) which settles every 30 minutes in batches of transactions, rather than RTGS’ per individual fund transfer request. So with RTGS, the fund transfer instructions are processed in real-time and the settlement of funds transfer happens individually on an instruction to instruction basis.²

What are RTGS transfers?

RTGS transfers let you digitally transfer large amounts to anyone else with a bank account in India. There are a lot of advantages to RTGS transfers. By being able to get transfers processed in real-time by the RBI, you know your transaction is safe and secure. And once it is processed, the funds show up quite quickly, if not immediately, in your beneficiary’s bank account. There is no longer the need to write and mail a physical check, or your beneficiary having to go down to the bank to deposit the money. You save time and money and are able to transfer funds in a more secure way with RTGS.

Sending money internationally? Check out Wise.

While we may have easy internal transfers covered with RTGS, Wise can be a clear and easy way to get money to India from abroad. We believe in bringing as much transparency as possible to money transfers, so we use the real mid-market exchange rate. That means that the rate you usually see on Google is what you get with Wise. And we have one low fee that we show right upfront. No hidden charges or surprises. We also make sure that we let you know if you can get a better deal out there with our comparison tool. Give it a try and see how much you can save by sending money to India with Wise.

How to do RTGS transfer?

You can do an RTGS transfer through your NetBanking account online or through the app with your Indian bank, or by heading down to your local bank branch.

Before starting, make sure you have all the information required for the transfer. For in-person transfers, check which bank branches can do an RTGS transfer near you and that the beneficiary’s bank branch can receive it as well. You can take a look at the RBI website to see which ones have it available. But for the most part, Indian commercial banks are typically equipped with the ability to do RTGS.

If you are doing it online or on your app, head to “Third Party Transfers” or “Funds Transfers” to begin the process. You may need to add your beneficiary before moving forward.³

In either case, you will need to get your beneficiary details like their full name on their account, their account number, account type, their bank branch name, and the IFSC code.

Remember to be completely sure of the beneficiary’s account number. The RTGS system goes solely based on the account number given. So if the number is a digit off or wrong, your transaction could end up in someone else’s account.

You can find the bank’s Indian Financial System Code (IFSC) with the IFSC code finder or on the bank account’s checkbook. It is a specific code number for each bank branch in India.

Moving along in the transfer, you will need to provide the amount to be sent, your account number and any additional sender-to-receiver information.

When you are ready to send it, you can complete the transaction on your screen or submit the form in person to your bank. You will receive a Unique Transaction Reference (UTR) number to track your transfer in the system.

RTGS charges

In an effort to push for more digital transactions within India, the Reserve Bank of India has waived all charges on RTGS transfers from July 1, 2019, on. They have applied the same ruling to NEFT transfers with the intention to have more Indians switch from physical checks and demand drafts to one of these modes of digital transfers for their payments.⁴

RTGS timings

For most normal transactions, you can expect your beneficiary to receive the funds in real-time or at least within 30 minutes.⁵

Keep in mind, your RTGS transfer will only be processed within the RBI timings of 8 am to 6 pm on working days. But this could vary depending on your bank’s own timings, so check with your bank first. And of course, transactions won’t be able to be completed on weekends, unless there is a working Saturday.

RTGS limit

While an RTGS transfer is fast and easy, one obstacle is that it has a high minimum. You need to be sending at least ₹200,000 in each transaction to take advantage of RTGS⁶. There isn’t a maximum ceiling, so if you have ongoing large transaction amounts this can be an attractive method to use.

Let Wise take care of your international transfers

High minimums can make sending money more difficult than they have to be. Luckily, with Wise you can send money to India with no minimums or maximums. So if you need to send a gift, or payment, or just a little help to someone back in India, you can use Wise to get it there fast and easily. 90% of Wise transactions arrive in the Indian bank account within 24 hours from payment. Plus you get one low fee every time. You can use Wise’s easy to use website or award-winning app on the go or from your own home. Join Wise, and make difficult transfers a thing of the past.

Sources used for the article
1,2,3,5,6Reserve Bank of India
4 National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) systems