Full Form of RTGS | RTGS Full Form | RTGS Meaning | About RTGS
Full Form of RTGS is Real Time Gross Settlement: Real time gross settlement systems (RTGS) are funds transfer systems wherever transfer of cash or securities takes place from one bank to a different on a true time and on gross basis.
According to Wikipedia:
The real-time gross settlement is specialist funds transfer systems where the transfer of money or securities takes place from one bank to another on a “real time” and on a “gross” basis. Settlement in “real time” means a payment transaction is not subjected to any waiting period, with transactions being settled as soon as they are processed. “Gross settlement” means the transaction is settled on a one-to-one basis without bundling or netting with any other transaction. “Settlement” means that once processed, payments are final and irrevocable.
RTGS systems are typically used for high-value transactions that require and receive immediate clearing. In some countries, the RTGS systems may be the only way to get same day cleared funds and so may be used when payments need to be settled urgently. However, most regular payments would not use a RTGS system but instead would use a national payment system or network that allows participants to batch and net payments. RTGS payments typically incur higher transaction costs and usually operated by a country’s central bank.
The word form ‘RTGS’ stands for Real Time Gross Settlement, which might be outlined because of the continuous (real-time) settlement of funds individually on an order by order basis (without netting). ‘Real Time’ suggests that the process of directions at the time they’re received instead of at some later time.’Gross Settlement’ suggests that the settlement of funds transfer directions happens separately individual basis (on an instruction by instruction basis). Considering that the fund’s settlement takes place within the books of the Federal Reserve Bank of Republic of India, the payments are final and irrevokable.
The RTGS system is primarily meant for big price transactions. The minimum quantity to be remitted through RTGS is Rs two lakh. The utmost limit is Rs ten lakh per day.
Under traditional circumstances, the beneficiary branches are expected to receive the funds in real time as presently as funds are transferred by the remitting bank. The beneficiary bank needs to credit the beneficiary’s account among half-hour of receiving the funds transfer message.