RTGS SYSTEM

RTGS SYSTEM :
- The acronym 'RTGS' stands for Real Time Gross Settlement.
- RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a 'real time' and on 'gross' basis.
- This is the fastest possible money transfer system through the banking channel. Settlement in 'real time' means paayment transaction is not subjected to any waiting period.
- The transactions are settled as soon as they are processed.
- 'Gross settlement' means the transaction is settled on one to one basis without bunching with any other transation.