For online Real-Time Gross Settlement (RTGS) transactions, no charges are levied, while transactions completed at a bank branch incur a fee of Rs. 15 plus Goods and Services Tax (GST).
Understanding RTGS Transaction Charges
Real-Time Gross Settlement (RTGS) is a system designed for high-value interbank fund transfers, facilitating immediate and final settlement of transactions. The charges associated with RTGS depend primarily on the mode through which the transaction is initiated. Banks typically structure their fees to encourage digital transactions.
Key Charges for RTGS Transactions:
- Online Transfers: When an RTGS transaction is processed through a bank's online platform, such as net banking or mobile banking applications, no charges are levied. This encourages customers to utilize digital channels for their banking needs.
- Bank Branch Transfers: If an RTGS transaction is completed by visiting a bank branch, a specific fee is applicable. For such transactions, a charge of Rs. 15 Plus GST (Goods and Services Tax) is imposed. This fee covers the operational costs associated with manual processing at the branch.
Detailed Fee Structure for RTGS
The table below summarizes the charges for RTGS transactions based on the mode of initiation:
| Transaction Mode | Charges |
|---|---|
| Online RTGS Transfers | No Charges |
| RTGS at Bank Branch | Rs. 15 Plus GST |
Why the Difference in Charges?
The distinction in charges between online and branch-based RTGS transactions is a common practice among banks. This strategy serves multiple purposes:
- Promoting Digital Banking: By waiving fees for online transfers, banks encourage customers to adopt digital platforms, which are often more convenient and accessible.
- Reducing Operational Costs: Online transactions are automated, requiring less manual intervention and thus incurring lower operational overheads for banks compared to branch-based services that involve staff time, paperwork, and infrastructure.
- Efficiency: Digital channels generally offer a faster and more streamlined experience for customers, aligning with the "real-time" nature of RTGS.
For more detailed information on RTGS and its functionalities, you can refer to official banking resources, such as the Reserve Bank of India (RBI) website.
