RTGS or Real Time Gross Settlement is a transfer mechanism where transfer of money takes place from one bank to another on a real time and on gross basis. It is the fastest possible money transfer system through the banking channel.
Under RTGS transfer the transactions are settled as soon as they are processed. The beneficiary branches receive the funds in real time as soon as funds are transferred by the remitting bank. The RTGS window for customer’s transactions is available from 9.00 hours to 16.30 hours on week days and from 9.00 hours to 12.30 noon on Saturdays. RTGS is usually done for big amounts and not for small transactions. The remitting customer has to furnish the following information to a bank so that RTGS transfer can be made –
1. The Amount which customer wants to be remit.
2. The account number of the customer who is remitting the amount to beneficiary so that his or her account can be debited
3. Name of the beneficiary bank in which the beneficiary account is there.
4. Name and account number of the beneficiary customer to which the customer wants to transfer the money.
5. The IFSC Number of the receiving branch