REAL TIME GROSS SETTLEMENT (RTGS)

About:

• What is it? The RTGS is an online fund transfer system, supported by the Reserve Bank of India (RBI), which enables money transaction on a real-time basis.
  
  
• Functioning: RTGS is a system of continuous and real-time settlement of fund-transfers, individually on a transaction by transaction basis (without netting).
  • ‘Real Time’ means the processing of instructions at the time they are received.
    
    
  • ‘Gross Settlement’ means that the settlement of funds transfer instructions occurs individually.
    
    
  
  
  
• Limits: The RTGS system is primarily meant for large-value transactions.
  • The minimum amount for the transaction under this system is Rs 2 lakh.
    
    
  • There is no upper limit on the value of funds that can be transferred via the RTGS system.
    
    
  
  
  

Recent decision:

• The recent decision by RBI follows a robust year-on-year increase in the number of transactions by 8 per cent to ₹1,335 crore in March 2019. The aggregate amount of transactions rose 12 per cent year-on-year to ₹1,255.51 crore.
  
  
• New timing will be effective from 1st June.