Saturday, June 18, 2011

What is RTGS ?

RTGS is an acronym that stands for Real Time Gross Settlement. RTGS is a funds transfer system where money is moved from one bank to another in ‘real-time’, and on gross basis. When using the banking method, RTGS is the fastest possible way to transfer money. ‘Real-time’ means that the payment transaction isn’t subject to any waiting period. The transaction will be completed as soon as the processing is done, and gross settlement means that the money transfer is completed on a one to one basis without clustering with another transaction. The transaction is treated as final and irrevocable as the money transfer occurs in the books of the RBI (Reserve Bank of India). This system is maintained by the RBI, and is available during working days for a given number of hours. Banks using RTGS need to have Core banking to be able to initiate RTGS transactions.

Regards
G.Srinivas

2 comments:

  1. Will THE RTGS beneficiary income taxed for the amount?

    ReplyDelete
    Replies
    1. Dear Sir/Madam,

      It is based on source of funds.
      But for every bank transactions is official and anytime Income tax dept will ask details for transactions.

      Delete

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