What is the Difference Between RTGS and SWIFT?

The main differences between RTGS and SWIFT are related to their purpose, geographical coverage, processing time, and transaction limits. Here is a comparison of the two systems:

• Purpose: RTGS (Real Time Gross Settlement) is used for electronic funds transfers within the same country, while SWIFT (Society for Worldwide Interbank Financial Telecommunication) is used for international funds transfers between different countries.
• Geographical Coverage: RTGS is a national system, facilitating transfers between banks within a single country. SWIFT, on the other hand, is an international network that enables transfers between banks or financial institutions in different countries.
• Processing Time: RTGS payments are processed in real-time, ensuring that the recipient receives the funds immediately. SWIFT payments are processed in batches, which means that the processing time may vary depending on the banks and the countries involved.
• Transaction Limits: RTGS payments are primarily used for high-level transactions, with no upper limit on the amount that can be transferred, but a lower limit of 200,000 rupees. SWIFT transfers have no such limitations and can be used for transactions of any size.

To transfer funds using RTGS, both banks involved must be RTGS-enabled. For international transfers using SWIFT, the sender needs to provide the SWIFT code of the recipient's bank, which serves as an identifier for the institution.

Comparative Table: RTGS vs SWIFT

RTGS and SWIFT are both payment systems used for electronic funds transfers. However, they differ in their mode of operation and usage. Here is a table highlighting the differences between RTGS and SWIFT:

Unfortunately, the search results provided do not contain information needed to create this table. However, based on existing knowledge, the table above highlights the key differences between RTGS and SWIFT payment systems.