RTGS The full form of RTGS is "Real Time Gross Settlement". It is a project which is mainly handled by RBI and it can be defined as "the continuous (real-time) settlement of funds transfers individually on an order by order basis (i.e. without netting)".
Here the words 'Real Time' means that the processing of instructions is done at the time they are received itself, rather than at some later time. On the other hand 'Gross Settlement' means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). The settlement of funds actually takes place in the books of RBI and thus the payments are considered as final and irrevocable.
NEFT National Electronic Fund Transfer is another electronic fund transfer system. However, NEFT operates on a Deferred Net Settlement (DNS) basis rather than on real time basis. Thus, under NEFT transactions are settled in in batches. Under DNS, the settlement takes place with all transactions received till the particular cut-off time and all such transactions are also netted (i.e. payable and receivables and netted). RBI operates NEFT in hourly batches (RBI can change the timing of settlement of batches with prior intimation to banks) for example there are eleven settlements from 9 am to 7 pm on week days and five settlements from 9 am to 1 pm on Saturdays under NEFT. Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time. On the other hand in RTGS, transactions are processed continuously throughout the RTGS business hours.
Under RTGS, the minimum amount that can be remitted is Rs 2 lakh because RTGS is meant only for high value transactions. However, there is no maximum limit or upper limit for transfer of funds through RTGS.
In terms of the procedure as laid down by RBI, the beneficiary branches are expected to receive the funds on real time basis i.e. as soon as funds are transferred by the remitting bank. However, there are delays due to processing at the remitting and receiving bank. RBI has allowed the beneficiary banks to credit the beneficiary's account within two hours of receiving the funds transfer message. Thus, we do not see the transfers on real time basis and there are some delays. It is hoped that slowly this time will get reduced as more and bank and branches improve their internal transfer systems.
RBI keeps its RTGS service window for customer's transactions from 9.00 hours to 16.30 hours on week days and from 9.00 hours to 13.30 hours on Saturdays for settlement at the RBI end. (RBI can changes these business hours after giving due notice to Banks). However, the actual timings that banks follow vary depending on the customer timings of the bank branches and cushion kept by branches for sending the message to RBI.
The easiest way to find IFSC code is to ask the beneficiary to give you the same as now a days all cheque books also have IFSC code printed on every cheque. The person / organisation to whom you wish to send the money, can find out the same by merely going through the cheque leaf available with them. It is also available on RBI website
Each bank can decide the remitting charges for RTGS but these have to be within the following range prescribed by RBI :
a) For Inward transactions – No charge (Free)
b) Outward transactions – (i) Rs. 2 lakh to Rs. 5 lakh - not exceeding Rs. 30 per transaction.
(ii) Above Rs. 5 lakh - not exceeding Rs. 55 per transaction
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