RTGS / NEFT

WHAT IS RTGS

The acronym 'RTGS' stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds individually on an order by order basis (without netting). 'Real Time' means the processing of instructions at the time they are received rather than at some later time.'Gross Settlement' means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.

What are the transaction or service charges for RTGS/NEFT transactions done ?

Charges of RTGS/NEFT
Transaction

For transactions up to Rs. 1 lakh: Rs. 25 + Service Tax

For transactions above Rs. 1 lakh up to Rs. 5 lakhs : Rs. 50 + Service Tax

For transactions above Rs. 5 lakhs and up to Rs. 10 lakhs : Rs. 75 + Service Tax

For transactions above Rs. 10 lakhs and up to Rs. 15 lakhs : Rs. 100 + Service Tax

For transactions above Rs. 15 lakhs and up to Rs. 25 lakhs : Rs. 125 + Service Tax

For transactions above Rs. 25 lakhs : Rs. 200 + Service Tax

Benefits:

  • Avoid long waiting period.
  • Credits the Beneficiary's A/c on Same Day Through RTGS.
  • Credits the Beneficiary's A/c on Same Day/Next Day If Remittance Done Late In The Day.
  • No need of physical cheque/Demand draft.
  • Reduces time/cost/effort.
  • Reduces Paper work and improves efficiency.