What is RTGS? Real Time Gross Settlement explained
Adapted from RBI's RTGS System FAQ
RTGS stands for Real Time Gross Settlement - each transaction is settled individually and immediately, rather than being netted or batched with others.
RTGS is intended for high-value transfers: the minimum amount is ₹2,00,000, with no upper ceiling.
Yes. RTGS has operated on a 24x7x365 basis since December 14, 2020.
No. Because settlement happens directly in the Reserve Bank of India's books, RTGS payments are final and cannot be reversed by the sender once completed.
The receiving bank must return the funds to the originating bank, generally within one hour of receipt (or by the end of the RTGS business day). The sender is then eligible for compensation for any delay, at the repo rate plus 2%.