What is the maximum limit of RTGS transaction in India?

In India, the RTGS or Real-Time Gross Settlement system is used for transferring large sums of money between bank accounts in real time. The system is designed for high-value transactions and provides a secure and efficient way to move large amounts of money.  In general, there is no maximum limit of RTGS. Read on to get more details.

What is RTGS Maximum Limit? 

Unlike other payment systems such as NEFT (National Electronic Funds Transfer) or IMPS (Immediate Payment Service), RTGS does not have a predefined upper limit set by the Reserve Bank of India (RBI). 

This is primarily the reason why RTGS is suitable for transferring large amounts of money, such as business payments, real estate transactions, or large corporate transactions.

RTGS transactions have a minimum limit, which is set at ₹2 lakh (₹200,000). Transactions below this amount are not processed through RTGS and should be carried out via NEFT or other suitable payment methods.

• While there is no upper limit imposed by the RBI, individual banks might have their own policies and internal limits on RTGS transactions. 

• Banks may impose daily or per-transaction limits to manage their liquidity and ensure secure transaction processing.

• Banks may charge fees for processing RTGS transactions, which can vary based on the amount being transferred. These fees are typically higher for RTGS compared to NEFT or IMPS due to the real-time processing nature and large-value transactions.

It's important to check with your bank regarding any specific limits and charges applicable to RTGS transactions to ensure smooth processing of large-value transfers. This is all about the maximum RTGS limit.

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Among the most widely used methods for settling transactions in the nation, RTGS is suitable for both in-person and online money transfers. I have been using it for a long time and I find it convenient. I have arranged some details for you in this section about the maximum amount transfer through RTGS.

What is the RTGS maximum limit per day?

RGS transfers start at a minimum of Rs. 2 lakh. There is no related limit if you transfer through the local bank with regard to the higher limit. However, there might be a limit if you make the transfer using internet banking. It is typically Rs 25 lakh, though banks may have different criteria. Now you know what is the maximum limit of RTGS transaction in India.

The transaction timeframes for RTGS transactions have undergone a few changes. You can conduct RTGS transactions from 7 a.m. to 6 p.m., as per the most recent update on August 26, 2019. The hours for interbank transactions are 7 a.m. to 7:45 p.m. This is what I wanted you to know about the maximum RTGS limit.

What is the meaning of RTGS?

The Reserve Bank of India started Real-Time Gross Settlement (RTGS) in 2004. It is a mechanism that continuously transfers money in real-time. In this case, the term "real-time" refers to processing instructions without any kind of delay and immediately after they are received. In a similar style, gross settlement specifies that each order for a fund transfer will be treated separately.

What are the advantages of RTGS?

• There is no need for a physical check or demand draft.

• There is no chance that physical equipment will be lost or stolen, and beneficiaries won't be the victim of fraud.

• the transaction can be started from your house or work location using online banking, 

• There are no costs or fees associated with the transfer of funds.

• Transactions using RTGS have legal support.

• It is a risk-free and secure method of money transfer.

• There is no upper limit when sending RTGS transfers through a bank branch.

• You can send money in real-time to the beneficiary account.

Now you are aware of the maximum amount transfer through RTGS.