Real Time Gross Settlement is the continuous settlement of transfers on a real time basis. It is swift and today is the fastest mode of transfer of funds.
The fund is used to transfer large amounts of money and for smaller amounts the NEFT can be used.
Things needed for RTGS transfer?
a) One has to mention the amount that needs to be sent.
b) Remitting customer's account number which is to be debited.
c) Name of the beneficiary bank and branch.
d) The IFSC Number of the receiving branch.
e) Name of the beneficiary customer
1. Account number of the beneficiary customer
2. Sender to receiver information, if any
What happens if the RTGS amount is not credited?
According to the Reserve Bank of India, the money RTGS member for the credit to a beneficiary customer's account, will be returned to the originating RTGS member within the stipulated time of one hour of the receipt of the payment at the PI of the recipient bank or before the end of the RTGS Business day, whichever is earlier, if it is not possible to credit the funds to the beneficiary customer's account for any reason e.g. account does not exist, account frozen, etc.
Once the money is received back by the remitting bank, the original debit entry in the customer's account is reversed.