RTGS :

• Real-time Gross Settlement (RTGS) is a special fund transfer system where in one can transfer money from one bank to another within India, on a ‘real-time’ basis i.e. the money will be transferred immediately without the waiting period and on ‘gross-settlement’ basis.
• The bank through which RTGS is done is called an RTGS member bank. Each member bank is allotted a unique code called IFSC code for identification and transactional purposes. IFSC code is an 11 digit alpha numeric (i.e. combination of alphabets and numbers) code.
• The Institute for Development and Research on Banking Technology (IDRBT), Hyderabad provides IFSC codes to all the banks.
• The money is transferred from account of sender to account of receiver having an account in different bank using internet.
• Since the transaction is neither through cash nor through cheque, both the parties need to use IFSC codes of their banks to transact.
• As per the guidelines of RBI one can use RTGS for transferring minimum 2 lakh rupees. Since this is a ‘real-time’ transaction the amount gets debited in the receiveis account on the same day as soon as the bank receives instruction from the sender.
• The bank charges commission to the sender but not from the receiver.