Real Time Gross Settlement (RTGS)
The acronym "RTGS" stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a "real time" and on "gross" basis. This is the fastest possible money transfer system through the banking channel. Settlement in "real time" means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. "Gross settlement" means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable.
The RTGS system is primarily for large value transactions. The minimum amount that can be remitted through RTGS is 2 lakhs. There is no upper ceiling for RTGS transactions. RTGS eliminates settlement risk.
The system has also stabilized over the years and has been witnessing increased coverage in terms of bank branches and transaction volume. The volume of RTGS transactions is increasing rapidly.
Charges for RTGS:
|Value Band||Charges (w.e.f. 15.11.2010)|
|RTGS||Rs 2 lakhs to Rs 5 lakhs||Rs 25.00 per transaction + Service tax|
|Above Rs 5 lakhs||Rs 50.00 per transaction + Service tax|
National Electronic Fund Transfer (NEFT)
NEFT is an electronic payment system to transfer funds from one account to another, between NEFT participant bank branches in India. The NEFT system operates on a deferred net settlement basis (DNS), in which transactions are settled in batches. It is a risk free, secure and reliable mode for transfer of funds of any amount, in which more than 120,000 branches of 150 Banks participate
Charges for NEFT
|Value Band||Charges w.e.f. 01/08/2012|
|NEFT||Amounts upto 10,000||Rs 2.50 per transaction + Service tax|
|Amounts from 10,001 to 1 lakh||Rs 5.00 per transaction + Service tax|
|Amounts above 1 lakh to 2 lakhs||Rs 15.00 per transaction + Service tax|
|Amounts above 2 lakhs||Rs 25.00 per transaction + Service tax|
(Inclusive of full working Saturdays)*
|Bank Cut-off Timings|
|RTGS||8:00 a.m. to 4:30 p.m.||4:15 p.m.|
|NEFT||8.00 a.m. to 7:00 p.m.
In 12 hourly settlements
*As per RBI
Customer Facilitation Centres - NEFT & RTGS
List of All Centers