what is rtgs payment

Real-Time Gross Settlement (RTGS) is an electronic funds transfer system that allows for the instantaneous transfer of money and/or securities on an individual order basis without netting debits with credits across the books of a central bank. This system is used for large-value interbank funds transfers and is operated and organized by a country’s central bank. RTGS transactions are processed on a one-to-one basis, and once settled, they cannot be reversed, making the payments final and irrevocable. RTGS is generally employed for wholesale or high-value interbank electronic funds transfers, and it is designed for high-priority transactions such as interbank transfers, corporate payments, and government transactions. The minimum amount for RTGS transactions is typically set at a high value, for example, in India, the minimum amount for RTGS transactions is Rs 2 lakh. RTGS is considered a safe and secure method of transferring funds, and it allows for the real-time transfer of funds without any delay. It is available 24/7 throughout the year and does not have any maximum limit on the amount that can be transferred. Overall, RTGS plays a vital role in fostering economic growth and facilitating seamless financial operations.