RTGS stands for “Real Time Gross Settlement.” It is a system used for the electronic transfer of funds between banks in India. The RTGS system is operated by the Reserve Bank of India (RBI) and is used for high-value transactions, typically those over Rs. 2 lakhs (approximately $2,700).
The RTGS system allows for the immediate transfer of funds between banks in real-time, meaning that the funds are transferred and settled immediately, without any delay. This is in contrast to other electronic funds transfer systems, such as the National Electronic Funds Transfer (NEFT) system, which operates on a batch-processing basis and may take several hours for the funds to be transferred and settled.
RTGS transactions can be initiated by banks, financial institutions, and large corporates through their respective banks. The RTGS system is available for customers during the specified timings on all working days, except on 2nd and 4th Saturdays of the month.
The RTGS system is considered to be a very secure way to transfer funds, as it uses advanced technology to protect against fraud and unauthorized transactions. Additionally, the RTGS system is closely monitored by the RBI to ensure the smooth functioning of the system and to address any issues that may arise.
In short, RTGS (Real Time Gross Settlement) is a system used for the electronic transfer of funds between banks in India. It is operated by the Reserve Bank of India (RBI) and is used for high-value transactions, typically those over Rs. 2 lakhs (approximately $2,700). The RTGS system allows for the immediate transfer of funds between banks in real-time and is considered to be a very secure way to transfer funds, as it uses advanced technology to protect against fraud and unauthorized transactions. It’s available during the specified timings on all working days, except on 2nd and 4th Saturdays of the month.