BANKING AFFAIRS

Detailed explanation-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).

Detailed explanation-2: -The term real-time gross settlement (RTGS) refers to a funds transfer system that allows for the instantaneous transfer of money and/or securities. RTGS is the continuous process of settling payments on an individual order basis without netting debits with credits across the books of a central bank.

Detailed explanation-3: -Page 1. Q.1. What is RTGS System? Ans The acronym “RTGS” stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a “real time” and on “gross” basis.

Detailed explanation-4: -A Real Time Gross Settlement System (RTGS) is a funds transfer system in which the transfer of funds between one bank and another takes place in “real time” and on a “gross” – transaction by transaction – basis, without bundling or netting with any other transaction.

Detailed explanation-5: -Detailed Solution. RTGS is not a 24x7 system. The RTGS service window for customer transactions is available to banks from 7 am to 6 pm on a working day, for settlement at the RBI end. However, the timings that the banks follow may vary from bank to bank.