Definition
RTGS (Real Time Gross Settlement)
RTGS is a system for large-value money transfers that are settled individually and in real time.
RTGS is designed for high-value transfers and settles each transaction individually and immediately ('gross' and 'real time'), rather than in batches like NEFT. It has a minimum transaction amount, making it suited to large payments such as property purchases or business settlements.
Like NEFT, RTGS is available 24x7, requires the beneficiary's account number and IFSC, and online transactions are typically free of RBI charges. Because settlement is real-time and final, the funds reach the beneficiary bank almost instantly.
For smaller amounts, IMPS and UPI are usually more convenient, while NEFT covers everyday transfers without a minimum.
Related terms
- NEFT (National Electronic Funds Transfer)NEFT is an electronic system for transferring money between bank accounts across India, settled in batches around the clock.
- IMPS (Immediate Payment Service)IMPS is an instant, round-the-clock interbank money transfer service available through mobile, internet and ATM channels.
- MICR and IFSC CodeMICR and IFSC are codes that uniquely identify bank branches for processing cheques and electronic transfers.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.