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Transfer over INR 2 Lakhs by paying low RTGS transfer charges.
Is a family member in urgent need of money? Are you looking for a way to transfer money at an untimely hour? Is the transfer amount higher than INR 2 Lakhs? If you answered yes to all the above questions and are looking for a legal and secure way to transfer large sums, then RTGS is the answer to your questions. Let us understand what it is and what are RTGS Charges.
RTGS stands for Real Time Gross Settlement RTGS. It is a real-time money transfer payment method through which you can initiate high-value transactions exceeding INR 2 lakhs within minutes. The Reserve Bank of India (RBI) processes RTGS payment requests immediately. You can transfer significantly larger sums of money in a single, individual transaction, unlike the National Electronic Fund Transfers (NEFT) system, which comes with an upper limit on fund transfers.
The RBI typically settles the transaction within 30 minutes of creating an RTGS fund transfer request. As such, the beneficiary account is credited in the shortest time, and the money transferred via RTGS is final and cannot be revoked.
The charges you must pay for sending funds via RTGS are known as RTGS transfer charges. Essentially, the RBI does not levy any processing fee for RTGS transfers. However, it does impose a service charge. Here is a schedule of the RTGS fees:
The RBI does not levy any processing fee for transfers made via RTGS. However, it does levy a service fee, which the sender must pay. The beneficiary is not liable to make any payments on inward transactions. Here are the RTGS charges:
Fund Transfer Amount
Service Fee for Inward Transaction
Service Fee for Outward Transaction
INR 2 Lakh – INR 5 Lakh
NIL
Not exceeding INR 24.50 plus taxes
INR 5 Lakh and above
Not exceeding INR 49.50 plus taxes
The INR 24.50 and INR 49.50 is the maximum charge a bank can levy for an RTGS transaction. Banks may charge service fees lower than the above charges mandated by the RBI.
Here is an example of how RTGS charges vary based on different transaction amounts.
INR 10,000 and below
Above INR 10,000 up to INR 1 Lakh
Above INR 1 Lakh up to INR 2 Lakh
Above INR 2 Lakh up to INR 5 Lakh
INR 24.50 + GST
Above INR 5 Lakh up to INR 10 Lakh
INR 49.50 + GST
RTGS allows you to make high-value transactions at the lowest costs. The RTGS facility is available 24x7x365. Since the RBI has capped the RTGS transfer charges, you need not worry about hefty costs. Since the RBI has waived off its processing fees on RTGS transfers, banks, too, may choose to pass on this nil RTGS charge benefit to their customers. If you receive the payment later than what is stated by the RBI, you are eligible for compensation at the current repo rate + 2%.
All RTGS payments are settled by the RBI and have legal backing, thereby eliminating any instances of losses, thefts, or fraudulent encashment of funds. You can initiate RTGS transactions through internet banking or mobile banking. You can also visit your pay to transfer funds via RTGS, but the bank may levy an additional RTGS charge for the offline services provided.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.
