Full Form of RTGS
RTGS stands for Real-Time Gross Settlement. It is a system used for the continuous and real-time settlement of funds transferred from one bank to another. Here are some key points about RTGS:
Real-Time Processing: Transactions are processed instantly as they are initiated, ensuring immediate transfer of funds.
Gross Settlement: Each transaction is settled individually rather than netted against other transactions.
High-Value Transactions: RTGS is typically used for high-value transactions, making it ideal for corporate payments, large business transactions, and other significant financial transfers.
Operational Hours: RTGS services are generally available during specific banking hours on business days, although this may vary by country.
Minimum Transfer Amount: There is often a minimum limit set for transactions, which can vary according to the regulations of the central bank.
Secure and Reliable: It is considered a safe and reliable method of transferring funds as it reduces the risks associated with payment delays or defaults.
Usage: Primarily used by banks and financial institutions, RTGS facilitates interbank transactions as well as payments to businesses and individuals.
In summary, RTGS is an essential tool in the banking system for ensuring quick and secure transfer of funds, particularly for high-value transactions.