Real Time Gross Settlement (RTGS) System aims
to do what e-mail did for the post card. Instead
of sending instructions for payments through
cheques, with Real Time Gross Settlement System
banks can route payments through on-line messages
to RBI’s RTGS Payment Gateway.
As electronic messages move
instantaneously the transactions can be concluded
immediately unlike in the case of cheque clearing.
In RTGS environment the payer has to inform
his bank to debit his account and credit the
payee’s account with an equivalent amount.
With RTGS, money would move faster and transactions
would be settled in a matter of minutes and
the payee would have funds in his account
within a maximum time-frame of two hours of
RTGS is an electronic payment
system of Reserve Bank of India which provides
online settlement between participating Banks
continuously throughout the day. Using RTGS
Customers of the Bank can make payment to
the beneficiary’s account in another
RTGS facilitate the funds
transfer across the Banks and Branches. At
present 95 Banks and 1435 Branches are under
RTGS system. Under RTGS system Inter Bank
transactions and Customer Transactions has
been enabled by the Reserve Bank of India.
Customer Transaction can
be outward or inward remittances i.e. Funds
can be transferred by or received by the Customer
under RTGS system. The unique feature of the
system is unlike other clearing system in
RTGS Funds can be transferred or received
Just In Time i.e. within 2 hours of instructions
so given that to at cost less than draft charges.
For sending the funds through
the RTGS all you have to do is fill &
sign the Funds Transfer Instruction Form (
available at Branches ) along with all the
necessary details, such as Name of the beneficiary,
Name of the Bank and Branch, A/c No. and IFSC
Code of the beneficiary’s Bank.
For receipt of the funds
you need to give the IFSC Code of our Bank
& Branch to the remitter of the funds.
After the instructions are
received in prescribed form, duly signed in
we will remit the funds through RTGS and within
2 hours funds will be credited to beneficiary’s