Originally posted 2022-02-21 17:43:26.
The full form of RTGS is Real Time Gross Settlement. As mentioned, this helps in transferring the money as well as securities from one bank to another bank. This is done by means of real-time and without any netting involved. Furthermore, this can be said as continuous or real-time settlement of funds on an individual basis on an order basis. In detail, Real time means processing the instructions at the moment we receive the request. And Gross settlement means on an individual basis, funds transfer happens as per the instructions provided.
RTGS means Real Time Gross Settlement. it helps in transporting the money as well as securities from one bank to another bank. This is done employing real-time and without any netting involved. In detail, Real-time means dispensing the instructions at the moment we obtain the request. And Gross settlement means on an individual basis, funds transfer happens as per the instructions provided.
However, the RTGS method is used for higher money valued transactions that require faster and immediate clearing. But, the minimum amount that can be remitted through this method is 2 lakh. In detail, this does not involve the physical exchange of money and is regulated by the central bank of the countries. In simple words, it reduces the amount from the X bank and adds that amount to the Y account. And one more benefit of RTGS is if the beneficiary account is not active, the funds return back to the bank which initiated. The reasons can be like account does not exist, Frozen account, etc. The duration of the amount that returns to the originating bank is around 1 hour or before EOD, whichever is earlier.
The term real-time gross settlement “RTGS” applies to a funds transfer system that provides for the immediate transfer of money and/or salvation. RGTS is the constant process of settling and payments on a singular order basis without any netting accounts with credits over the books of a prime bank.
Real Time Gross Settlement systems are essentially maintained by the Reserve Bank of India. RTGS can be done using electronic methods including net banking or mobile app. RTGS takes place in 30 minutes. RTGS is enabled only in specific bank branches across the country.
What is the minimum and maximum limits for RTGS?
The minimum limit for RTGS is INR 2 lakhs and the maximum limit is INR 10 lakhs.
RTGS is more suitable for larger transactions. It is considered a faster and an effective mode of payment when you have a huge amount to transfer.
| Term | Full Form |
| RTGS | Real Time Gross Settlement |
FAQ’s
As mentioned, this helps in transferring the money as well as securities from one bank to another Bank. This is done by means of real time and without any netting involved. Furthermore, this can be said as continuous or real-time settlement of funds on a individual basis on order basis.
RTGS is short form of Real Time Gross Settlement.
Real Time Gross Settlement is full form of RTGS.
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