RTGS (Real Time Gross Settlement) is a high-value, real-time fund transfer system operated by the Reserve Bank of India. Each transaction is settled individually ("gross") and instantly ("real time") — no batching, no waiting.
RTGS is designed for large transactions — the minimum transfer amount is Rs 2 lakh (no upper limit). It is the go-to system for big-ticket payments: property purchases, business payments, and institutional transfers. Since December 2020, RTGS operates 24/7.
The key advantage of RTGS over NEFT: finality and irrevocability. Once an RTGS transfer is processed, it is final — the beneficiary bank is guaranteed the funds. This makes RTGS preferred for time-critical, high-value transactions. The RBI waived RTGS charges for savings account customers, though banks may still charge nominal fees.