RTGS (Real-Time Gross Settlement)
RTGS (Real-Time Gross Settlement) is a Reserve Bank of India (RBI)-operated fund transfer system used for high-value money transfers between banks. RTGS transactions are settled individually in real time without waiting for batch processing. RTGS has a minimum transfer limit of Rs. 2 lakh, no maximum transfer limit, and is available 24x7 throughout the year.
RTGS is widely used for secure and instant bank-to-bank transfers involving large transaction amounts. Since transactions are processed individually and settled immediately, RTGS offers high reliability and faster fund transfer completion for businesses and individuals. Customers can also use Bajaj Pay on Bajaj Finance to pay insurance premiums securely online.
What is RTGS and how does it work
RTGS full form in banking is Real-Time Gross Settlement. It is an electronic fund transfer system where transactions are processed instantly and individually instead of being grouped together.
Under RTGS:
• “Real time” means transactions are processed immediately
• “Gross settlement” means each transaction is settled separately
• Funds are transferred directly between banks without waiting for batch settlement
RTGS is mainly used for high-value transactions where immediate settlement is important. Since payments are settled individually, RTGS offers improved security and reduced settlement risk.
Benefits of RTGS
RTGS is one of the most secure and efficient methods for high-value bank transfers in India.
Key benefits of RTGS include:
• Instant settlement for high-value bank transactions
• Safe and secure fund transfer mechanism regulated by RBI
• Available 24x7 including weekends and bank holidays
• Suitable for transfers above Rs. 2 lakh
• Real-time payment confirmation and reduced transaction delays
• Reliable transfer system for business and corporate payments
You can also explore NEFT vs RTGS to understand the differences between the two fund transfer systems.
RTGS Fees & Charges
Online RTGS transactions are generally free for most customers in India. The Reserve Bank of India waived RTGS processing charges from 1 July 2019 to encourage digital banking and online fund transfers.
However, some banks may apply nominal charges for branch-based RTGS transactions.
Typical offline RTGS charges may include:
• Up to Rs. 24.50 for transfers between Rs. 2 lakh and Rs. 5 lakh
• Up to Rs. 49.50 for transfers above Rs. 5 lakh
• Applicable GST charges as per bank policies
RTGS charges may vary slightly depending on the bank and transaction mode. Most internet banking and mobile banking RTGS transactions remain free for customers.
RTGS transaction time
RTGS transactions are processed in real time and are available 24x7x365 across India. Since 14 December 2020, RBI has enabled round-the-clock RTGS services including weekends and bank holidays.
Key RTGS timing details include:
• Transactions are processed instantly after initiation
• Settlement occurs individually without batch delays
• Most RTGS transfers are completed within minutes
• Receiving banks process credit immediately after settlement
• RTGS transfers are irreversible after successful processing
You can also explore RTGS transfer time for additional transaction timing details.
How does the RTGS process work?
RTGS transfers follow a structured and secure banking process for instant settlement.
Here is how the RTGS process works:
1. The sender initiates an RTGS transfer through internet banking, mobile banking, or branch banking
2. The sender enters beneficiary details including bank account number and IFSC code
3. The bank verifies transaction details and account balance
4. The RTGS request is transmitted to the RBI settlement system
5. RBI processes the transfer instantly between participating banks
6. The recipient bank credits the beneficiary account after successful settlement
7. Both sender and beneficiary receive transaction confirmation
Users can also use digital payment solutions such as Bajaj Pay UPI for smaller everyday transactions.
You may also refer to how to do an RTGS transaction for step-by-step transfer guidance.
RTGS amount limit
RTGS is primarily designed for high-value transactions.
Important RTGS limit details include:
• Minimum RTGS transfer amount: Rs. 2 lakh
• No upper transaction limit prescribed by RBI
• Individual banks may define internal transaction limits for online banking channels
You can explore RTGS amount limit to understand transfer restrictions and bank-specific limits in detail.
Difference between NEFT and RTGS
Both NEFT and RTGS are electronic fund transfer systems regulated by RBI, but they differ in processing methods and transaction suitability.
Feature | RTGS | NEFT |
Settlement type | Real-time individual settlement | Batch-wise settlement |
Minimum amount | Rs. 2 lakh | No minimum limit |
Processing speed | Instant | Processed in batches |
Suitable for | High-value transactions | Small and medium-value transfers |
Availability | 24x7 | 24x7 |
You can also compare RTGS vs IMPS to understand how instant fund transfer systems differ.
Where is RTGS used? Key applications
RTGS is commonly used for high-value and time-sensitive financial transactions.
Major RTGS applications include:
- Business and corporate fund transfers
- Real estate and property transactions
- Securities and investment settlements
- Supplier and vendor payments
- Government and institutional transactions•
- High-value personal bank transfers
RTGS offers immediate settlement and strong transaction security, making it suitable for important financial transfers requiring instant processing.
Steps for loan repayment online through Bajaj Finance platforms
On the Bajaj Finance app
1. Download the Bajaj Finance app from the Google Play Store or App Store and install it on your device
2. Open the app, log in, or register if you are a new user
3. Scroll down to the ‘Bills and recharges’ section and click on 'Loan Repayment’
4. Search and select your loan provider
5. Fill the required details
6. Click on ‘FETCH YOUR BILL’
7. Your bill amount appears, select ‘PROCEED TO PAY’
8. Choose your preferred payment option and click on ‘PAY NOW’
9. Once you have completed the transaction, you will get notified that the payment was successful
On the Bajaj Finance website
1. Go to the Bajaj Finance website
2. Scroll down to the ‘Bills and recharges’ section and click on 'Loan Repayment’
3. Enter your mobile number and login with an OTP
4. Search and select your loan provider
5. Fill the required details
6. Click on ‘FETCH YOUR BILL’
7. Your bill amount appears, select ‘PROCEED TO PAY’
8. Choose your preferred payment option and click on ‘PAY NOW’
9. Once you have completed the transaction, you will get notified that the payment was successful
