Features of RTGS
The following are the features of RTGS:
1. Real-time and Gross Settlement: RTGS transfers the funds in real time. This means that as soon as the sender completes, the transaction, the funds are credited to the receiver’s account. Gross settlement means that all the RTGS transactions are settled immediately, unlike other modes of transfer where the payments are settled in a cycle.
2. Very Less Downtime: RTGS generally operates throughout the day and is down only for 1 hour per day due to cutoff. This ensures that a person can transfer the funds to anyone, anytime.
3. Secure and Safe: RTGS is protected by various security mechanisms such as encryption, firewalls, etc., and the details of the sender and receiver are completely safe. Also, it is a government service, and the liability lies with the government in case of any failure of the transaction.
4. Finality of Settlement: The transaction done through RTGS is irrevocable. This helps to avoid counterparty financial risks.
5. Centralised Controlling Authority: RTGS is maintained and operated by the central banking authority of India, which is the Reserve Bank of India (RBI).