Saturday, February 6, 2010

RTGS -- REAL TIME GROSS SETTLEMENT

This is the fastest means of transfer of funds from the account of A customer of one Bank to the account of another customer of another bank. it is used for an amount not less than 1 lac.There is no LIMIT for maximum amount for transaction.

RTGS stands for Real time gross settlement.Real time means a time having zero waiting period. Gross settlement means settlement on individual basis.This is different from net settlement where transactions of a bank is processed throughout the day but interbank settlement takes place after certain period after netting the debits and credits of a particular bank against another bank.

Thus, RTGS Payment is a system in which fund transfer between Banks are processed and settled individually through out the day.INDIAN FINANCIAL SYSTEM CODE is must for this transaction, which is a unique code allotted to any individual branch of a bank.

NEXT POST-- NEFT- NATIONAL ELECTRONIC FUND TRANSFER

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