What is an RTGS System ?
RTGS stands for Real Time Gross Settlement. RTGS system is used for funds transfer between one bank to another on a Real time and on a Gross basis. “Gross settlement” means the transaction is settled on one to one basis without bunching with any other transaction. In RTGS system the transactions are settled as soon as they are processed making it as the fastest possible money transfer system through the banking channel. Settlement in “real time” means payment transaction is not subjected to any waiting period.Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable.