The acronym ‘RTGS’ stands for real-time gross settlement. The Reserve Bank of India (India’s Central Bank) maintains this payment network. Real-time gross settlement is a funds transfer mechanism where transfer of money takes place from one bank to another on a ‘real time’ and on ‘gross’ basis.
Who can use RTGS?
The payer must fulfill the below-mentioned conditions to process a RTGS transaction: The payer must have a bank account. The minimum transaction amount should be Rs 2 lakh per transaction. The transaction must be made within the geographical boundaries of India.
What is mean by RTGS in bank?
The acronym ‘RTGS’ stands for Real Time Gross Settlement, which can be explained as a system where there is continuous and real-time settlement of fund-transfers, individually on a transaction by transaction basis (without netting).