RTGS (Real Time Gross Settlement)

RTGS stands for Real Time Gross Settlement.

It is India's fastest electronic funds transfer system, where money moves from one bank to another in real time on an individual transaction basis, without waiting for other transactions to batch with it. RTGS is operated by the RBI and is the preferred method for large-value transactions. What is RTGS? The key word is "real time" — transactions are processed continuously throughout the business day, 24 hours a day on weekdays. "Gross settlement" means each transaction is settled individually, not netted against other transactions. This makes RTGS the most即时 (instant) and final settlement method in India. RTGS has a minimum transaction limit of ₹2 lakhs. There is no maximum limit, which makes it suitable for high-value transactions like buying property, paying for a car, business-to-business payments, or investing in capital markets. For example, if you are purchasing a flat in Bangalore for ₹80 lakhs and paying through a bank transfer, RTGS would be used. The RTGS system processes transactions through the RBI's Real Time Settlement system. When you initiate an RTGS transfer from your bank, the funds are immediately debited from your account and the message is sent to the destination bank in real time. The beneficiary bank must credit the beneficiary's account within the same RTGS window. RTGS charges are nominal. For transactions up to ₹10 lakhs, banks charge ₹25 to ₹55 per transaction. For amounts above ₹10 lakhs, charges range from ₹30 to ₹60. Many banks offer free RTGS for corporate salary accounts or bulk business payments. The sender also needs the beneficiary's account number and the IFSC code of the destination bank branch. For urgent large-value payments, RTGS is the fastest and most secure option. Unlike NEFT which batches transactions, RTGS is continuous and individual. The finality of RTGS is guaranteed by the RBI, making it the most trusted system for high-stakes financial settlements in India.