RTGS Abbreviation

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Popular abbreviations of RTGS:

Searching for RTGS abbreviation / RTGS full form leads to different results in different categories. The below table illustrates the popular acronyms among them.

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What does RTGS mean?

RTGS is the short form for the payment method known as Real-Time Gross Settlement. It is a mode of payment where high-value funds are transferred from one bank to any other bank based on a real-time gross basis. This means that the RTGS payment is not subjected to any waiting procedures and is settled as soon as the processing takes place.

Here, the gross settlement means that the settlement takes on a one-to-one basis which doesn’t consist of any bundling with other transactions. Thus, these transactions are generally cleared quickly and are done by all the major central banks of India.

History of RTGS

The first system to implement RTGS attributes was the US Fedwire system. It was launched in 1970. France and United Kingdom followed suit with RTGS transactions in 1984. By 1985, India has three central banks which implemented these payments but by the end of 2005, over 90 banks successfully implemented it.

Working of RTGS

RTGS transactions are cleared on a gross basis thus there is no need to involve further institutions in clearing and settling transactions. Customers availing of RTGS functionality can also do the payment entirely through the online banking of their respective bank. They just need to mention all the details of the receiver and proceed with the payment.

A majority of banks across India now provide 24 hours RTGS facilities while there are some banks that have operational hour limits. Since these payments are of importance, banks charge a fee for the transaction as RTGS fees.

Advantages of RTGS

• RTGS transfers are faster in nature. For people seeking quicker and more secure transactions, RTGS is the way there are no or very less delays in the transaction processing.
• They are much more secure than other modes of transfer. Since banking platforms use secure methods, the transactions taking place are more secure than their counterparts.
• Ease of convenience is also one major factor for RTGS. Since they can be initiated online as well, the receiver has a convenient way of going forward with the transfer.