RAS question
The minimum amount for RTGS transactions is:
Correct answer: (B) ₹2 lakh.
The minimum amount for an RTGS transaction in India is ₹2 lakh, with no upper or maximum ceiling set by the RBI.
Explanation
RTGS, or Real Time Gross Settlement, is meant for large-value fund transfers, so the RBI keeps a minimum transaction size instead of leaving it open-ended. The RBI FAQ states that the minimum amount to be remitted through RTGS is ₹2,00,000 and that there is no upper or maximum ceiling. Under RBI rules, ₹2 lakh is the operative minimum threshold for RTGS. The same RBI FAQ also explains why RTGS is treated as a high-value, real-time payment system: transactions are processed individually on a transaction-by-transaction basis, and the system is available on all days on a 24x7x365 basis. Since December 2020, RTGS availability has not been limited to normal banking hours.
Why the other options are wrong
- (A) ₹5 lakh is above the RBI-stated RTGS minimum, so it overstates the threshold required to initiate an RTGS transfer.
- (C) RTGS does have a minimum amount, because the RBI FAQ specifies ₹2 lakh as the minimum remittance through RTGS.
- (D) ₹1 lakh is below the present RBI-stated RTGS minimum and reflects an old limit rather than the current one.
Concept
Payment and settlement systems fall under Indian Economy, especially the operational limits of RBI-regulated electronic fund transfer channels. RAS often asks such facts because they connect banking infrastructure with everyday financial inclusion and digital payments.