RTGS means Real Time Gross Settlement, which might be well-defined as the non-stop clearance of the transfer of funds separately on an instruction by the basis of order without the help of netting. Real Time can be defined as the dealing out of the instructions at a particular time on which they are to be received relatively than at approximately later time.
The system of RTGS is chiefly meant for the transactions of large amount. If you are dealing up with the HDFC bank then you have to mention the HDFC bank IFSC code with the other details. The least amount that can be forwarded by RTGS is only 2 lakh. There cannot be any upper limit for the transaction of RTGS.
Benefits of RTGS:
- It transfers the amount in a real time and it facilitates with a very high speed
- It brings up with the fastest settlement of the cycles. RTGS does not have the issues of clearing house payment.
- It does not have any type of limitation within India. If you are making the transaction with Bank of India then you have to provide Bank of India IFSC code and there will be no limit in India.
Steps involved for money transfer using RTGS are:
The fund transfer of RTGS is very fast and convenient too. Therefore the steps involved in making the transaction are as follows:
Step 1: The first step involves the activation. The skill for making transaction of all the payments for the third-party by the use of facility of Internet banking has to be activated firstly for making such type of transactions by RTGS. Now, go to the fund transfer and select the option transfer to the other bank.
Step 2: Now, all you have to do is to add up the receiver to whom you have to transfer the money. You have to provide all the details of the receiver and first you have to add up the individual too. You have to provide all the necessary information about the bank account of the receiver for making such type of the transaction.
The information comprises the name of recipient, the total number of account recipient has, name of the bank in which you have to do transaction and the branch of bank too, and also you have to provide the IFSC code of the recipient bank. If you are making up the transaction by the Bank of India then all you have to refer is the Bank of India IFSC code.
Step 3: Now, the processing step takes place. The bank takes the time of about 12-24 hours for the confirmation of the info of the recipient. When all the info has been confirmed, the new recipient would be activated and then the transfer of money can be done to the recipient account. One thing in RTGS that differs from others is it cannot make up the transaction up to 2 lakh. RTGS has a particular limit.
Step 4: Now, you have to choose the type of transaction to RTGS, mention the name of recipient, money you want to transfer to recipient, and you have to mention the reason for transferring the money. When you acquiesce the info and also the security password of transaction, the instruction for making the transaction has been done. Now, the money has been transferred to the recipient account.