RTGS. What is RTGS? Short Notes on Real-time gross settlement (RTGS). All about Real-time gross settlement (RTGS).
Real-time gross settlement (RTGS) maintains by the Reserve Bank of India (RBI). 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 payment 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 transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable.
RTGS is a large value funds transfer system whereby financial intermediaries can settle interbank transfers for their own account as well as for their customers. The minimum value of transaction in RTGS system is Rs 2,00,000. The system effects final settlement of interbank funds transfers on a continuous, transaction-by-transaction basis throughout the processing day. Customers can access the RTGS facility between 9 am to 4:30 pm on weekdays and 9 am to 1:30 pm on Saturdays.
Reserve Bank of India (RBI) Governor Raghuram Rajan on October 19, 2013 launched new Real Time Gross Settlement (RTGS) system for fund transfers will improve the efficiency of the country’s financial markets.
The new ISO 20022 compliant RTGS system provides three access options to participants — thick-client, Web-API (through INFINET or any other approved network) and Payment Originator module.
Participants can decide the mode of participation in the system based on the volume of transactions and the cost of setting up the infrastructure.