Glossary · Banking & Finance
RTGS
Real Time Gross Settlement — a payment system that settles fund transfers in real time, on a transaction-by-transaction basis, without netting.
RTGS is operated by the RBI and is meant for high-value transfers. Minimum amount: ₹2 lakh per transaction (no maximum). RTGS operates from 7 AM to 6 PM on weekdays and 7 AM to 1 PM on Saturdays. Funds are credited to the beneficiary account within 30 minutes, subject to the originating and beneficiary bank being part of the RTGS network. RTGS is preferred for property purchases, large vendor payments, and inter-bank settlements.
Examples
A company pays a ₹3 crore vendor invoice via RTGS from its current account to ensure same-day settlement.