What is RTGS?
RTGS is a real-time and secure money transfer system through which we can transfer money 24×7, even on bank and public holidays as well. RTGS or Real Time Gross Settlement is a funds transfer service or a method for instant money transfer launched by RBI in 2004. It is used for high-value transactions. Being a real-time funds transfer service, the funds are instantly transferred to the beneficiary without any delay, unlike NEFT. It has made it very convenient to send and receive money from anywhere and anytime.
RTGS is an acronym for Real Time Gross Settlement. RTGS is used by people and banks themselves for high-value transactions which need to be settled immediately. This is achieved by eliminating the role of intermediaries in the transfer process. RTGS also forms the base for transactions done using IMPS as the IMPS transactions are finally settled between the banks using RTGS only. Unlike IMPS, which settles the payments in 3 cycles per day, RTGS payment settlement is a continuous process.