What is the Full Form of RTGS
Full Form of RTGS
The full form of RTGS is “Real Time Gross Settlement”. RTGS is a system where there is the continuous and real-time settlement of fund transfers, individually on a transaction-by-transaction basis (without netting).
What is RTGS
Real-time gross settlement (RTGS) refers to a payment method that allows the instantaneous transfer of money or securities deposits. RTGS is the steady process of settling payments on an individual orderly basis, without netting debits with credits across the transactional books of a central bank.
This is a type of fund settlement process that is used for bank transfers that are high-value amounts. This is because the minimum transaction amount is INR 2 lakh Rupees. The system was first adopted by three central banks in the year 1985. Today, there are more than 110,000 RTGS-enabled bank branches, making it one of the most popular money transfer methods, owing to its capability of transferring funds on the same day. You can know more about RTGS on RTGS Wikipedia.
What are the benefits of RTGS
In the earlier section, We have discussed the full form of RTGS and brief information related to RTGS. Now in this section, we are going to see some important benefits of doing RTGS.
- The fund transfer occurs in real time
- One can execute these transactions on an individual basis
- The transfer can occur online
- The process follows a one-to-one basis for crediting the funds
- RTGS is predominantly used for high-value transactions
- The system is highly reliable and is powered by the RBI
- It offers immediate clearing
- Organizations can execute these transactions on a gross basis
How RTGS works
Here in this section, we will cover the process of how the RTGS system works. In the above section, we have covered the full form of RTGS, the advantage of doing RTGS, and brief history.
- RTGS payments are generally cleared immediately and are primarily organized with the central bank of India.
- These settlements take place quickly, in real-time. The fund transfer method is maintained by the Reserve Bank of India (RBI) and is applicable for transfers within the country only.
- Once these settlements are made, the amount transferred is irrevocable.
Specification of RTGS
There is some supreme advantage of doing RTGS over the NEFT transfer method. In this section, we will have a look into those facts.
One of the features of RTGS that make it particularly relevant for modern consumers is that the transactions can be initiated through net banking.
To do so, consumers require the beneficiary’s information so that the transfer can be made to the correct individual.
Some of this information includes:
- The name of the individual or beneficiary
- The beneficiary’s bank IFSC code
- The beneficiary’s account number
- The beneficiary’s bank branch and bank name
- Interestingly, consumers can also schedule their RTGS payments a few days in advance. This makes it extremely convenient for employers and organizations to transfer large funds to their high-value employees.
RTPS Transaction Charges
To promote digital payments RBI (Reserve Bank of India) has pulled out all the charges for doing the RTGS. It means there are no such charges for the RTGS payment system. So in this article, we have covered full form of RTGS, advantage of RTGS, and many more.
KitabDukan is a startup that stands on a vision to create an ecosystem for students where they can get good quality books for several top exams of India like JEE, books for JEE, books for NEET preparation, UPSC specific books, SSC top book collection, and many more. We at KitabDukan have the vision to create a smooth platform for students and professionals together to connect them on a single platform to make the learning and teaching process very unique and smooth. We have connected several top institutes of Jaipur, Patna, Banaras, and other cities for exams like JEE, UPSC, SSC, Banking, Railways, and many more exams. We focus to provide a good quality of books and handwritten notes all over India by which the students who belong to the low economy section can also get notes and books at their place through us. KitabDukan aims to become a platform to become an all-time solution for students all over India.
What KitabDukan Offers
We at KitabDukan avail the complete notification related to the examination. We provide a space on our website where they can find the previous year’s question papers. Also, we have a collection of the quality book which they can buy from our website to prepare well. We also provide full-time customer care support to our premium users through a career counseling program.
Note:- At KitabDukan, We avail the complete information starting from the latest exam notification, and complete syllabus, and then we provide you the complete list of important books which are needed for exams. In this article, we have demonstrated the full form of RTGS along with the needful information related to RTGS.