Generally, RTGS (Real-Time Gross Settlement) transactions are free for online transfers, but banks may levy charges for transactions initiated from a branch.
Here's a more detailed breakdown:
-
Online RTGS Transfers: Most banks in India offer free RTGS transfers when initiated online through net banking or mobile banking platforms. This is to promote digital transactions.
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Branch-Initiated RTGS Transfers: Banks often charge a fee for RTGS transfers done through a physical branch. These charges vary from bank to bank and depend on the transaction amount.
Why the Difference in Charges?
The difference in charges stems from the operational costs associated with each method. Online transfers are automated and require less manual intervention, reducing costs for the bank. Branch transfers, on the other hand, involve manual processing by bank staff, leading to higher operational costs which are then passed on to the customer.
Example of Potential Fees:
While specific fees vary, here's a general idea of potential charges for branch-initiated RTGS transfers (these are illustrative and subject to change):
| Transaction Amount (INR) | Potential RTGS Charges (INR) |
|---|---|
| 2,00,001 to 5,00,000 | 25 + GST |
| Above 5,00,000 | 50 + GST |
Important Considerations:
- Always check with your specific bank for the latest fee structure for RTGS transfers. You can typically find this information on their website or by contacting customer service.
- Be aware of the minimum and maximum transaction limits for RTGS transfers, which are typically ₹2,00,000 and ₹5,00,000, respectively, but can vary from bank to bank.
In summary, while online RTGS transfers are generally free, branch-based RTGS transfers may incur charges. It's crucial to verify the applicable fees with your bank before initiating a transaction.
