Latest News
-
1:2 Stock Split: Record Date On April 24; Buy The Scrip Now To Be Eligible? -
3:1 Bonus Shares: Record Date In 3 Days On 20th April; Buy The Pharma Stock? -
Global Economy Faces 19% Income Reduction by 2049 Owing to Climate Change -
How To Get Pre-Approved Loans At SBI? All You Need Is Four Clicks! -
How To Pick Up The Right Index Funds For Your Portfolio? -
Senate Examines Boeing's Safety Failures in Back-to-Back Hearings -
Apple Joins Forces with Cleanmax for Solar Energy Projects in India -
Ford Recalls 456K Bronco Sport and Maverick Cars Over Drive Power Loss -
Heavy Rains in Dubai Lead to Flight Disruptions, Air India Cancels Services -
Lok Sabha Election 2024: NRI And Above 18? Here's How To Enroll And Vote In India!
What is Real-Time Gross Settlement (RTGS)?
Online fund transfer through RTGS is allowed for a minimum sum of INR 2 lac. However, there is no upper limit for RTGS transactions. For the fund transfer through RTGS, both the remitting as well as the beneficiary bank require to be RTGS enabled.
How an RTGS transaction is executed?
First and foremost, for fund transfer via RTGS, the service facilitating third party transfer using online banking should be activated. Using third-party transfer, the remitting concern can then add the details of the beneficiary, including, name of the beneficiary, account number, branch and bank name as well as the IFSC code of the beneficiary branch.
After such details are fed in the system, the bank validates the authenticity of the beneficiary. The process takes 12-24 hours and after successful verification, bank activates the new beneficiary. With this activation, funds can now be transferred to the account of the beneficiary through RTGS that would transfer the funds in real time.
What are the advantages of RTGS fund transfer ?
1. An RTGS electronic fund transfer facilitates fund transfer on real time basis. In case of a holiday, the amount gets credited on the next working day.
2. RTGS could also be done offline by submission of the remittance form at the bank branch of the remitter.
3. RTGS avoids the cost involved in other instruments of fund transfer such as demand draft.
4. Fund transfer through RTGS involves comparatively lower remittance charges. Inward remittances are free of cost, while banks can charge a fee not exceeding Rs 30 for an outward remittance on transaction amount of Rs 2lac-5lac. For higher amounts, banks could charge a fee of Rs 55.
Thus, RTGS is a safe and secure fund transfer mechanism and avoids risk of loss associated with cheques and demand draft that are used for fund transfer.
GoodReturns.in
