RTGS Overtakes UPI in India's Money Movement: RBI Report Reveals a Big Surprise

India may be witnessing a digital payment revolution led by UPI, but when it comes to high-value transactions, it’s the RTGS (Real Time Gross Settlement) system that truly dominates the country’s financial network. According to the latest report by the Reserve Bank of India (RBI), RTGS handles nearly 69% of India’s total transaction value, while UPI leads only in the number of transactions, not in total money moved.

UPI Rules in Volume, RTGS in Value

The RBI data highlights a clear divide in India’s digital payment landscape. While UPI accounts for over 85% of the total transaction volume, it contributes only 9% of the total value. In contrast, RTGS, which is typically used for transferring large sums between accounts, handles the majority of India’s monetary value flow — a staggering 69% share.

This means while UPI has become the go-to platform for small, everyday transactions — from grocery shopping to online payments — RTGS remains the backbone of large, high-value financial transfers, often used by businesses, corporations, and property buyers.

What Makes RTGS So Powerful?

The Real Time Gross Settlement system enables instant and irreversible transfers of funds between bank accounts. Unlike UPI, which is mainly designed for retail payments, RTGS is meant for high-value transactions starting from ₹2 lakh and above.

Once an RTGS transaction is completed, the money cannot be reversed or recalled, making it a final and secure settlement. The service is available 24x7x365, ensuring that even large payments can be made anytime — without being restricted by banking hours or holidays.

Charges for RTGS Transactions

According to RBI guidelines:

• Receiving funds via RTGS is completely free for customers.

• Sending funds between ₹2 lakh and ₹5 lakh may incur a maximum fee of ₹25 (plus tax).

• For transactions above ₹5 lakh, banks can charge up to ₹50 (plus tax).

• Banks are allowed to charge less, but not more than these prescribed limits.

These nominal charges, combined with real-time settlement, make RTGS the preferred channel for business deals, corporate fund transfers, property payments, and high-value institutional transactions.

How UPI Changed the Payment Culture

Since its launch in 2016, the Unified Payments Interface (UPI) has completely transformed how Indians handle daily payments. Managed by the National Payments Corporation of India (NPCI), UPI allows instant fund transfers using mobile apps, QR codes, and virtual payment addresses — without the need for account details.

UPI’s simplicity, zero transaction fees, and interoperability have made it the default choice for millions of Indians for peer-to-peer and merchant payments. From tea stalls to tech stores, UPI is everywhere — but it’s not designed for massive fund transfers.

Why RTGS Still Matters in the UPI Era

Despite UPI’s unmatched popularity, RTGS remains irreplaceable for high-value banking operations. Its real-time processing, instant settlement, and high security standards make it indispensable for large-scale financial activity.

Where UPI handles the frequency of payments, RTGS manages the weight of India’s money movement. Together, they form a dual backbone of India’s digital economy — UPI driving everyday commerce and RTGS powering big-money business flows.

The Bottom Line

The RBI’s latest figures reveal an important truth: India’s digital payment ecosystem isn’t just about UPI’s reach, but also RTGS’s reliability. While UPI leads in convenience and accessibility, RTGS continues to command the financial high ground when it comes to total value of funds transferred.

In short, UPI keeps India’s daily economy running — but RTGS moves the nation’s real money.