RTGS Transaction Timings: Everything You Need to Know

RTGS (full form – Real Time Gross Settlement) is a specialised electronic funds transfer system used by banks to facilitate high-value and time-sensitive transactions. The funds are transferred from one bank to another in ‘real-time’, meaning the transaction is processed within few seconds or minutes. The word ‘gross’ in RTGS means that each RTGS transaction is settled individually (in full) without offsetting or netting against any other transactions. This mitigates counterparty risk and/or dependence on other transactions.

This comprehensive guide will help demystify the world of real-time transfers and equip you with the knowledge needed to navigate this financial landscape.

RTGS Transfer Timings

Online RTGS transactions via Net Banking or Mobile Banking is available 24/7, every day of the year. However, transactions carried out via bank branches may differ based on the concerned bank’s branch timings. For Ujjivan Small Finance Bank’s RTGS offline transactions, here’s the cut-off time:

• Monday to Friday: Branch working Hours (9:30 AM to 4PM)
• Saturday(excluding 2nd and 4th):Branch working hours: 9:30 AM to 4PM

Prior to December 2020, there were RTGS time limits on RTGS transactions as real-time transfers were earlier available during specific working hours on weekdays. However, as part of its continuous efforts to enhance customer convenience, the RBI made RTGS available round-the-clock, 24*7. This move, to remove RTGS time limits ensures that you can initiate RTGS transfers at any time, even on weekends and public holidays. The extended availability of RTGS offers unparalleled convenience, allowing you to make high-value transactions seamlessly, regardless of the time or day.

RTGS Transaction Limit and Rules

To ensure the smooth functioning of the RTGS system and maintain transaction security, certain rules govern RTGS transactions. Let's take a closer look at these transaction rules:

• Minimum and Maximum Transaction Limits: The minimum amount for an RTGS transaction is set at ₹2 lakh, with no upper limit. Banks have the free-hand to decide on the upper limit. For Ujjivan, it’s capped at ₹10 lakh. This makes RTGS ideal for high-value transactions such as property purchases or large business payments. Any transfer below this threshold should be conducted using other payment methods, such as NEFT or IMPS.
• Cut-off Time: Each bank participating in the offline RTGS transfer system sets a cut-off time for initiating transactions on weekdays. The cut-off time may vary between banks. It's important to initiate your RTGS transfers before the cut-off time to ensure same-day settlement.
• Charges: Banks may levy certain charges for RTGS transactions, depending on factors such as the transaction amount, account type, and relationship with the bank. It is advisable to check with your bank regarding the applicable charges before initiating an RTGS transfer.
• Beneficiary Details: Accurate and complete beneficiary details, including the recipient's name, account number, bank branch, and Indian Financial System Code (IFSC), are essential for successful RTGS transfers. Incorrect or incomplete details may lead to transaction failures or delays.
• International Transactions: RTGS services are available for domestic fund transfers within India only. For international transactions, other payment methods need to be used.

How Does RTGS Work?

When you initiate an RTGS transfer, the sender's bank sends a message to the recipient's bank through the Reserve Bank of India (RBI). The recipient's bank then credits the funds to the beneficiary's account in real-time. This process is secure, efficient, and convenient for high-value transactions.

Interesting Fact: RTGS (Real Time Gross Settlement) is set to get safer with the RBI's new beneficiary name verification facility! With this feature, the sender initiating the RTGS transfer can see the recipient's name before actually transferring the money. It will ensure that individuals can double-check the identity of the recipient, reducing the instances of incorrect fund transfers and fraudulent transactions.

Benefits of Real-Time Transfers

RTGS offers several advantages over traditional modes of fund transfer, such as cheques or demand drafts. Let's look at some key benefits of RTGS:

1. Instantaneous Transfer: RTGS enables instant transfer of funds, ensuring that the recipient receives the money in real-time. This feature is particularly beneficial for time-sensitive payments or urgent financial transactions.
2. High Transaction Limit: RTGS allows you to transfer large amounts of money, making it suitable for high-value transactions such as buying property, making business payments, or settling invoices. The minimum amount for an RTGS transaction is ₹2 lakh.
3. Security and Transparency: RTGS transactions are highly secure and transparent. Each transaction is individually processed, eliminating the risk of errors or delays associated with batch settlements. Moreover, the RBI monitors and regulates RTGS transactions to ensure compliance with stringent security measures.
4. 24*7 Availability: With the recent extension of RTGS services to a 24/7 format, you can initiate real-time transfers anytime, including weekends and bank holidays. This flexibility provides convenience and accessibility for individuals and businesses alike.