Thursday, January 21, 2010
This is the fifth post in the series of Jargons of Online Banking.
RTGS stands for Real Time Gross Settlement. It is a fund transfer mechanism where money transfer takes place from one bank to another without any waiting time or in real time. Transactions are settled as soon as they are processed. It is primarily for large amounts, where minimum amount is supposed to be Rs 1 Lakh. RTGS transfers can be initiated anytime between 9 AM to 4:30 PM on weekdays and 9 AM to 12:30 PM on Saturdays. Receiver of the funds has not to pay any charges. Sender might be charged up to Rs 25 for funds transfer up to Rs 5 Lakhs and up to Rs 50 for funds transfer requests exceeding Rs 5 Lakhs. Not all the banks are yet supporting RTGS; latest list can be found at RBI's site.