RTGS

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Real Time Gross Settlement (RTGS) is an electronic form of funds transfer where the transmission takes place on a real time basis.

Over 60 countries worldwide use RTGS systems. RTGS systems are typically run by the central bank of a country. Often, these systems are integral components of the country economy. In India, transfer of funds with RTGS is done for high value transactions, the minimum amount being Rs 2 lakh, by RBI.

RTGS vs NEFT #

The beneficiary account receives the funds transferred, on a real time basis. The main difference between RTGS and National Electronic Funds Transfer is that while transfer via NEFT takes place in batches (with settlements and transactions being netted off), in the case of RTGS, the transactions are executed individually and on gross basis.