Real-time Gross Settlement (RTGS)

The acronym 'RTGS' stands for Real Time Gross Settlement, which can be explained as a system where there is continuous and real-time settlement of fund-transfers, individually on a transaction-by-transaction basis (without netting). 'Real Time' means the processing of instructions at the time they are received; 'Gross Settlement' means that the settlement of funds transfer instructions occurs individually.

The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ₹ 2,00,000/- with no upper or maximum ceiling.

Considering that the funds settlement takes place in the books of the Reserve Bank of India (RBI), the payments are final and irrevocable.

The following should be ensured while putting through a funds transfer transaction using RTGS –

• Originating and destination bank branches are part of the RTGS network.
• Beneficiary details such as beneficiary name, account number and account type, name and IFSC of the beneficiary bank branch should be available with the remitter.
• Extreme care should be exercised in providing the account number of the beneficiary, as, during processing RTGS transactions, the credit will be given to the customer’s account solely based on the account number provided in the RTGS remittance instruction / message.
• Responsibility to provide correct inputs in the payment instructions, particularly the beneficiary account number information, rests with the remitter / originator.

The credit is given to the account number written / given by remitter in his / her application / instruction. Credit to beneficiary account is released solely based on account number. It is the responsibility of remitting customer to write correct account number. The originator / sender should exercise due care in providing the correct account number of the beneficiary, in the RTGS remittance instruction / application.

Transactions in RTGS happen in real time and it is not possible to match name and account number before affording credit to the beneficiary. Since name in the Indian context is spelt differently and would not really match with that available with the beneficiary bank, the process of affording credit solely based on the account number of the beneficiary has been enabled.

The FAQs on “Legal Entity Identifier (LEI) for Large Value Transactions in Centralised Payment Systems” on the RBI website at https://www.rbi.org.in/Scripts/FAQView.aspx?Id=140 can be referred to.

All single payment transactions of ₹50 crore and above undertaken by entities (non-individuals) should include remitter and beneficiary LEI information. Governments or their departments / ministries and individual accounts are exempted from this requirement.

RTGS is available 24x7x365 with effect from December 14, 2020 subject to below mentioned limits on Transaction amount and timings. However, transactions initiated between 11:30 PM to 01:00 AM will be settled at 02:00 AM due to End of Day and Start of Day Process.

The customer can contact his / her branch if there is an issue of delay / non-credit to the beneficiary account.
The details of Customer Facilitation Centre of member banks are also available on the website of RBI at  https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2070. Axis Bank CFC contact number. 022-71315766, Email ID: cfc@axisbank.com.