It can be defined as the continuous (real-time) settlement of funds individually on an order by order basis (without netting).

• ‘Real Time’ means the processing of instructions when received.
• ‘Gross Settlement’ means the settlement of funds transfer instructions occurs on an instruction by instruction basis.

Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.

Minimum and maximum amount stipulation for RTGS transactions

The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2 lakh. The maximum limit is Rs 10 lakh per day.

RTGS Timings

Under normal circumstances, the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary’s account within 30 minutes of receiving the funds transfer message.