1. What does RTGS stand for?

Ans. The acronym ‘RTGS’ stands for Real Time Gross Settlement, which can be explained as a system where there is 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.

2. Are the payments under RTGS final and irrevocable?

Considering that the funds settlement takes place in the books of the Reserve Bank of India (RBI), the payments are final and irrevocable.

3. What are the benefits of using RTGS?

Ans. RTGS offers many advantages for funds transfer:

• It is a safe and secure system for funds transfer.

• RTGS transactions / transfers have no amount cap set by RBI.

• The system is available on all days on 24x7x365 basis. There is real time transfer of funds to the beneficiary account.

• The remitter need not use a physical cheque or a demand draft.

• The beneficiary need not visit a bank branch for depositing the paper instruments.

• The beneficiary need not be apprehensive about loss / theft of physical instruments or the likelihood of fraudulent encashment thereof.

• Remitter can initiate the remittances from his / her home / place of work using internet banking, if his / her bank offers such service.

• The transaction charges have been capped by RBI.

• The transaction has legal backing.