Question
What is RTGS System? How is it different from National Electronic Funds Transfer System (NEFT)?
- RTGS' stands for Real Time Gross Settlement
- RTGS transactions are processed continuously throughout the RTGS business hours.
- It is continuous (real-time) settlement of funds transfers individually on an order by order basis
- The funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.
- The transactions are netted (payable and receivables) in NEFT whereas in RTGS the transactions are settled individually.
- RTGS transactions are processed continuously throughout the RTGS business hours.
- But, NEFT operates in hourly batches.
