Full Form of RTGS
Real Time Gross Settlement
RTGS Full Form is Real Time Gross Settlement. RTGS is a system which lets individuals and companies to transfer funds between two banks within a country. It settles funds individually on order basis. And it is normally used for huge amounts or high value transfers.
What does “Real Time” mean in the RTGS Full Form?
Real Time means the instructions are processed as and when they are received. There is no waiting period for the instructions to be executed and transactions to be made.
What does “Gross Settlement” mean in the RTGS Full Form?
Gross Settlement means settlement of funds individually on instruction basis. Here the transactions are not bundled with other instructions and are settled at the time of receiving the instructions. The beneficiary bank will normally make the settlement to the concerned bank account within 30 minutes.
Is the settlement made through RTGS recoverable?
No. The payments made through RTGS are final and irrevocable as settlements of funds are entered in the books of RBI (Reserve Bank of India).
RTGS Transaction Charges :
If the amount to be transferred is between 2 and 5 lakh, the service charge is Rs.25 (with additional service tax). If the amount to be transferred is above 5 lakh, the service or transaction charge is Rs.50 (with additional service tax)
Minimum amount of remittance in RTGS System :
RTGS system is typically used for huge amounts. The minimum amount that can be remitted using RTGS System is 2 lakh.
Maximum amount of remittance in RTGS System :
There is no upper limit/ceiling for the amount to be remitted using RTGS System.
Operating Hours/Transaction Time Frame for RTGS:
The operating hours /transaction time frame for the RTGS is between 8.00 hrs and 16.30 hrs (Monday to Friday + 2nd Saturday and 4th Saturday). However, the actual operating hours may vary according to the working hours of the bank branch.
Information required to make a payment using RTGS System :
You should furnish the following information to make a payment using RTGS System.
- Name of the beneficiary and his/her Account Number
- Name of the bank in which the beneficiary has his/her account
- IFSC Code of the bank branch (in which the beneficiary has his/her account)
- Amount to be remitted
Advantages of using RTGS System :
Since the settlement takes place as and when the transactions take place throughout the day (and not at the end of the day), RTGS is considered to be the fastest and safest mode of fund transfer. RTGS system is normally operated by the central bank of a country, as it is one of the most critical infrastructures of the economy. Due to its growing importance World Bank has been offering huge support to the RTGS system of more than 100 countries. The entire system has been design based on International standards with best practices being implemented.
Popular Full Form of RTGS :
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