Nowadays, banking offers increasingly convenient and diverse transfer services, including LLG (Clearing House Transfer), RTGS (Real-Time Gross Settlement), and Real-Time Online Transfers. These services are designed to simplify financial transactions for customers.

You’re likely familiar with real-time online transfers via mobile banking, online banking, or ATMs. But what about LLG and RTGS? Let’s explore these services and their differences.

1. LLG (Clearing House Transfer)

LLG is an interbank transfer service using a clearing mechanism. Clearing involves a bank verifying whether the account’s balance is sufficient to cover the amount being transferred to another bank.

Advantages and Disadvantages

• Advantages:
  LLG transfer fees are relatively affordable. While fees vary across banks, Bank Indonesia (BI) sets the standard at IDR 5,000 per transaction.
   
• Disadvantages:
  Transfers take 2–3 business days to reach the recipient's account because the sending bank transfers funds to BI first, which then facilitates the transfer to the receiving bank.
  Additionally, LLG is less flexible, as transactions occur during scheduled clearing times, not continuously.

Transfer Limits

• Minimum: IDR 10,000
• Maximum: IDR 99,999,999 per day

How to Use LLG

You can initiate an LLG transfer manually by filling out a form at a bank branch or online via internet or mobile banking by selecting the LLG option.

Read: Scan, Pay, Done. Practical Transactions with QRIS neobank

2. RTGS (Real-Time Gross Settlement)

RTGS facilitates interbank money transfers in rupiah in real time. While transfers are processed immediately, the funds may not reach the recipient’s account on the same day, depending on the time of transfer.

Processing Time

Transfers typically take 3–4 hours. If initiated in the morning, funds usually arrive by midday or afternoon. Transfers made close to the bank's closing hours may be processed the next day. Most banks process RTGS transactions until 3:00 PM.

Transfer Limits

• Minimum: IDR 100,000,000
• Maximum: No limit (varies by bank policy)

Fees

RTGS fees are higher than LLG, ranging from IDR 15,000 to IDR 50,000 per transaction, depending on the bank.

3. Real-Time Online Transfers

Real-time online transfers are a quick and convenient method for sending money. Transactions are initiated and processed immediately through smartphones or internet banking, ensuring funds are delivered without delay.

Transfer Limits

• Minimum: IDR 10,000
• Maximum: IDR 50,000,000 per transaction
  For amounts exceeding this limit, alternative transfer methods are recommended.

Fees

For interbank transfers, an administrative fee is charged, which varies by transaction.

This method is ideal for small to medium amounts, offering speed and convenience for digital banking users.

Read: After Payday, Bills Come Out, Paying Using neobank is No Hassle!

LLG vs. RTGS: Key Differences

Choosing the Right Transfer Method

For transfers over IDR 100 million, you can choose between LLG and RTGS. For amounts under IDR 1 billion, RTGS is an option, but for over IDR 1 billion, RTGS is recommended.

If the transfer isn’t urgent and is under IDR 1 billion, LLG is a cost-effective choice despite its slower processing time. RTGS, on the other hand, is faster and suitable for higher amounts.

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