The expansion of RTGS is "Real Time Gross Settlement". It is maintained by reserve bank of India. RTGS is a money transfer technique where transfer of money occurs from one bank to another on a ‘real time’ and on ‘gross’ basis. RTGS can be described as continuous (real-time) settlement of funds transfers independently on an order by order basis. This technique is known as fastest money transfer technique.
The word ‘real time’ means that trasaction is executed at the time they are received, there is no waiting period. Conversely ‘Gross settlement’ means the settlement of fund occurs one to one basis without bunching with other transactions. Once the money transfer take place in the book of RBI, the payment is considered as final and irreversible.
RTGS is a large value funds transfer technique. In RTGS System the minimum value of trasaction is RS 2 lakh. There is no upper limit for transaction. Customers can use the facility of RTGS between 9 am to 4:30 pm on Monday to Friday and 9 am to 1:30 pm on Saturdays.
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