RTGS complete form in English and Hindi refers to a system for inter-bank fund transfer. RTGS is enabled on all foreign banks and is the fastest way to send money from one bank to another. There are a few things to remember when making a transaction through RTGS, including its minimum and maximum limits. Let’s take a closer look at both terms. Here are a few ways to use them.
RTGS is an electronic cash transfer system that enables a bank to transfer funds to an account anywhere in the world. Unlike NEFT, which is available only during the banking day, RTGS allows you to transfer funds at any time of the day. It’s a safe way to transfer funds and is backed by legal authority. The process is fast, secure, and easy to set up.
RTGS was first launched in the US in 1970. It is built upon a previous system for sending and receiving money electronically. The United Kingdom adopted a similar system in 1984, called CHAPS. The French launched a similar system a few years later, called SAGITTAIRE. Over the following years, other developed countries launched their own versions of the RTGS system. These systems were diverse in operation but were based on the processes used in each country.
Real-time gross settlement is a process that allows payments to be settled between two banks immediately. Unlike traditional banking methods, it does not net out debits and credits at the end of the day. It is a permanent payment, irrevocable, and generally managed by central banks. As a result, the method has become a standard in settling payments and minimizing the risks associated with high-value interbank transfers.
RTGS uses the ISO 11940-2 system to represent money transactions. In a nutshell, it is the standard used for Real-Time Gross Settlement or RTGS. The system was created by the Royal Institute of Thailand and uses the ISO 11940-2 standard for the international exchange of currency. Although there are differences between RTGS and ISO standards, it is widely used in government documents and road signs.
The RTGS system is more convenient for large-scale transactions, such as those involving two lakhs or more. Generally, this is the preferred method for high-value transactions, but it can be used for low-value transactions as well. Immediate Payment Service, also known as IMPS, was introduced by the Reserve Bank of India and the National Payments Corporation of India. It can be used for both online and mobile banking.