RTGS or Real Time Gross Settlement is an online fund transfer method that is overseen by the Reserve Bank of India. Through this method, people can transfer funds from one account to another in a real-time basis. Usually, RTGS payment involves a large amount of money and the minimum transaction should include more than Rs. 2 Lakhs. This is why RTGS transfer is reserved for business transactions and transfer of funds from one bank to the next.
RTGS is often considered to be a better option for fund transfer than the NEFT mode, where the clearance does not happen on a real-time basis. Here is a look at some of the ways in which you can take advantage of the RTGS method of payment.
1. Real-time settlement
RTGS transfer is the only option that involves real-time clearance. This means that as soon as you initiate the transfer, the beneficiary accounts will receive the funds instantaneously, without having to wait for the transfer. This is quite beneficial and is different from the NEFT method. In NEFT, the fund transfer is cleared in hourly batches. This means that there is a delay of a few hours from the time that you initiate the transfer till the time that it clears.
2. Online and offline method
RTGS payment can be made online and offline as well. If you are unsure whether you should proceed with the transfer online, you can do the same through the offline procedure as well. This will involve visiting the bank branch, filling out a remittance form and submitting it. However, the online procedure is much simpler, as you will not have to drop by the bank and the entire transfer can be conducted using the internet.
3. No added costs
All other means of fund transfer usually involve an additional cost, known as the processing fee. For instance, in case of fund transfer using demand draft, you would need to first pay for the draft to be created. This is an added cost that you would not have to bear if you choose the RTGS transfer method.
4. No upper limit to transfer
While you cannot transfer an amount lower than Rs. 2 Lakhs using the RTGS payment, the RBI has not imposed any upper limit to the amount that you can transfer. This is very useful for business purposes, as many large companies need a safe and secure way to transfer Crores of Rupees. RTGS offers this option to businesses, unlike all other modes of transfer.
You should take advantage of the RTGS method if you have a business and need transfer funds from one account to another instantaneously. The method can also be used to payy off the salaries of your employees.
RTGS is often considered to be a better option for fund transfer than the NEFT mode, where the clearance does not happen on a real-time basis. Here is a look at some of the ways in which you can take advantage of the RTGS method of payment.
1. Real-time settlement
RTGS transfer is the only option that involves real-time clearance. This means that as soon as you initiate the transfer, the beneficiary accounts will receive the funds instantaneously, without having to wait for the transfer. This is quite beneficial and is different from the NEFT method. In NEFT, the fund transfer is cleared in hourly batches. This means that there is a delay of a few hours from the time that you initiate the transfer till the time that it clears.
2. Online and offline method
RTGS payment can be made online and offline as well. If you are unsure whether you should proceed with the transfer online, you can do the same through the offline procedure as well. This will involve visiting the bank branch, filling out a remittance form and submitting it. However, the online procedure is much simpler, as you will not have to drop by the bank and the entire transfer can be conducted using the internet.
3. No added costs
All other means of fund transfer usually involve an additional cost, known as the processing fee. For instance, in case of fund transfer using demand draft, you would need to first pay for the draft to be created. This is an added cost that you would not have to bear if you choose the RTGS transfer method.
4. No upper limit to transfer
While you cannot transfer an amount lower than Rs. 2 Lakhs using the RTGS payment, the RBI has not imposed any upper limit to the amount that you can transfer. This is very useful for business purposes, as many large companies need a safe and secure way to transfer Crores of Rupees. RTGS offers this option to businesses, unlike all other modes of transfer.
You should take advantage of the RTGS method if you have a business and need transfer funds from one account to another instantaneously. The method can also be used to payy off the salaries of your employees.
No comments:
Post a Comment