RTGS Timings to be extended from 4.30 pm to 6 pm

Learn more about RTGS and other fund transfer methods, in the wake of the extension of cut-off time of RTGS transfer, as declared by the RBI

RTGS Timings to be extended from 4.30 pm to 6 pm

Effective 1 June 2019, the last cut-off timing for customer transactions through Real Time Gross Settlement (RTGS) has been extended by an hour-and-a-half, for all working days. Accordingly, RTGS transactions will take place under three windows, 8 am to 11 am, 11 am to 1 pm and 1 pm to 6 pm (and not the previous closing time of 4.30 pm).

While there are no additional charges over and above the fixed processing charges for transactions conducted in the first window, there will be an additional fee of Rs. 2 and Rs. 5 per transactions for transactions done in the second and third window respectively.

RTGS is the fastest payment method for high-value interbank transactions and customers can use this service for transactions above Rs. 2 lakh. Immediate Payment Service (IMPS), on the other hand, is the other fast money transfer method which, however, has an upper limit of Rs. 2 lakh per transactions.

The prevalence of RTGS can be gauged from the fact that in April this year alone, Rs. 1.14 crore worth of RTGS transaction was done by bankers and customers.

Related: Understanding your savings account 

How does RTGS happen?

RTGS happens at a real time unlike National Electronic Funds Transfer (NEFT), which happens batch-wise. RTGS transactions are processed continuously on a transaction-by-transaction basis. RTGS fund settlement takes place in the books of the RBI, so these transactions are final and irrevocable.

How RTGS is useful and beneficial?

It is safe and secure, allows a real-time transfer and doesn’t require the usual documentation of cheques, demand drafts etc. It can be done online and the transferor doesn’t even need to visit the branch or deposit any paper.

Related: What makes mobile banking safe?

What is the information required to complete an RTGS transfer?

The remitting customer has to furnish certain information to the bank while requesting an RTGS remittance. This includes the amount to be remitted, the account number to be debited, name of the beneficiary, beneficiary bank, branch, IFSC of the receiving branch, account number of the beneficiary customer etc.

What are other commonly-used payment methods?

NEFT and IMPS are the other two popular payment transfer services offered by banks. NEFT transactions are settled on an hourly basis while IMPS is done instantly. Like RTGS, NEFT too is not available on Sundays, second and fourth Saturdays and bank holidays. IMPS has no such restriction but you cannot transfer more than Rs. 2 lakhs through IMPS in a single transaction. UPI: Here's what you must know about this new-age payment mode.

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