Real-time gross settlement systems (RTGS) is an electronic payment system in which payment instructions between banks are processed and settled individually and continuously on a "real time" and “gross settlement" basis. 'Gross Settlement' means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.
The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is 2 lakh. There are no charges for RTGS.
Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank.However, the bank timings may vary depending on the customer visit time of the respective branches.
Digital advancement has made life simpler. Technology backed by high-speed internet has certainly been an enabler. There’s a paradigm shift in the way we transact today and transferring money isn’t complicated as it used to be.
With National Electronics Fund Transfer or NEFT transferring money is quick and easy. NEFT has paved the way for big fund transfers online. So, let’s know more about NEFT.
National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, customers can transfer funds from their bank to any individual having an account with any other bank in the country participating in the Scheme. Your banks need to be a part of the NEFT funds transfer network and the system must be NEFT enabled for the designated bank branch.
NEFT transactions can be initiated 24x7 through Retail Internet Banking, Mobile Banking and Corporate Internet Banking as per below.
