'RTGS' stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank in India to another on a 'real time' and on 'gross' basis. This is the fastest possible money transfer system through the banking channel. Settlement in 'real time' means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. 'Gross settlement' means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable. Stop Payment be cannot be initiated. The minimum amount to be remitted through RTGS is Rs.1 lakh (though individual banks can further raise the minimum amount) and no upper ceiling. RTGS is a credit-push system, which implies that pre-funding is a vital ingredient of the entire chain. It should be noted that both NEFT and RTGS system can be used only for remitting Indian rupee among the participating banks within the country. Goals of RTGS The goals of RTGS are 1. To reduce settlement risk due to settlement lag 2. To reduce credit risk 3. Speed up the process of high value payments 4. To give accurate position of the participating bank Processing Charges

a) Inward transactions ± Free, no charge to be levied b) Outward transactions ± Rs. 1 lakh to Rs. 5 lakh - not exceeding Rs. 25 per transaction. Rs. 5 lakh and above ± not exceeding Rs. 50 per transaction. As compared to other modes of transfer like Demand Drafts, the charges are nominal.

11.00 am. In DNS. 12. In this mechanism.00 am. All transactions are held up till that time. RTGS has gridlock solving algorithms which will consolidate those transactions and settle it as a group. His account number which is to be debited 3. Name of the beneficiary customer 5. the transactions that cannot be settled due to lack of funds will be kept and retried later when the funds arrive.00 noon. Gridlock Mechanism When there are multiple transactions to be settled and each transactions wait for another transaction to settle. the situation is called gridlock. NEFT settlement takes place 6 times a day during the week days (9. For example.00 am.Basic Information required The remitting customer has to furnish the following information to a bank for effecting a RTGS remittance: 1. In gridlock situation no transaction settles and waits indefinitely for other transaction to settle. in RTGS. Amount to be remitted 2. Contrary to this.00 noon). . transactions are processed continuously throughout the RTGS business hours. Name of the beneficiary bank 4. By this mechanism. Account number of the beneficiary customer 6. the settlement takes place at a particular point of time.00 am and 12. the rejection of transactions due to lack of funds will be avoided. The IFSC Number of the receiving branch Difference with NEFT EFT and NEFT are electronic fund transfer modes that operate on a deferred net settlement (DNS) basis which settles transactions in batches. 11. Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time. The gridlock program can be scheduled to run automatically or by manual trigger. if any 7. 15.00 hours. Sender to receiver information.00 hours and 17. Settlement Process Settlement Queues There are queuing mechanisms available in RTGS.00 hours) and 3 times during Saturdays (9. 13.

RTGS *Australia .China National Advanced Payment System ("CNAPS") (Super Online Banking System) *Chile .CERTIS(Czech Express Real Time Interbank Gross Settlement System) *Hong Kong .SATNA (Real-Time Gross Settlement System) *Israel .STR (Sistema de Transferência de Reservas) *Canada .org.Zahav (Credit and Transfers in Real Time) *Japan .HSVP (Croatian: Hrvatski sustav velikih pla anja) *Czech Republic . The lists are readily available at all RTGS enabled branches.rbi. both the sending bank branch and the receiving bank branch would have to be RTGS enabled.KASSIP(Kuwait's Automated Settlement System for Inter-Participant Payments) *Malaysia .RTGS *Indonesia .RENTAS (Real Time Electronic Transfer of Funds and Securities) *New Zealand .VIBER (Hungarian: Valós Idej Bruttó Elszámolási Rendszer) *India .ESAS (Exchange Settlement Account System) .BOJ-NET (Bank of Japan Financial Network System) *Kuwait.AECH.in/Scripts/Bs_viewRTGS. Similar settlement system existing in other countries *Albania .RINGS (Real-time INterbank Gross-settlement System) *Brazil .Sistem Bank Indonesia Real Time Gross Settlement (BI-RTGS) *Iran .RITS (Reserve Bank Information and Transfer System) *Bulgaria .LBTR/CAS (Spanish: Liquidación Bruta en Tiempo Real) *Croatia .Note: For a funds transfer to go through RTGS. Besides.Clearing House Automated Transfer System (CHATS) *Hungary .aspx). the information is available at RBI website (www.LVTS (Value Transfer System) *China .

SAMOS (The South African Multiple Option Settlement) *Switzerland .in/pdfs/faq/faq_rtgs. www.NAGSS (Nigerian Automated Gross Settlement System) *Macedonia .SORB *Russia . www.org/wiki/Real_Time_Gross_Settlement 5.MEPS+ (MAS Electronic Payment System Plus) *South Africa .html .LBTR (Spanish: Liquidación Bruta en Tiempo Real) *Philippines . www.BAHTNET (Bank of Thailand Automated High value Transfer Network) *Turkey .EFT (Electronic Fund Transfer) *United Kingdom .BESP system (Banking Electronic Speed Payment System) *România . en.com/FAQ_NEFT_RTGS.MIPS (Macedonian Interbank Payment System) *Peru .PhilPaSS *Poland .ReGIS system *Saudi Arabia .in/financial-services/2045-neft-vs-rtgs.*Nigeria .Fedwire RTGS systems covering multiple countries: TARGET resp.SIC (Swiss Interbank Clearing) *Thailand .wikipedia.pdf 4.CHAPS (Clearing House Automated Payment System) *United States .rbi.pdf 3.indianbank.e-investing.in 2. https://www. TARGET2 (Trans-European Automated Real-time Gross Settlement Express Transfer System) in 26 countries of the European Union Sites referred 1.bobibanking.(Saudi Arabian Riyal Interbank Express) SARIE *Singapore .org.

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