Real Time Gross Settlement (RTGS) is an online system for settling transactions of financial institutions, especially banks. RTGS systems are push payment systems with transactions initiated by the paying bank. If Bank A or one of its customers needs to pay $1,000 to Bank B or one of its customers, Bank A initiates the transaction and Bank B is immediately paid $1,000 electronically by Bank A. Examples of RTGS systems include CHAPS in the UK and Fed Wire in the United States. Each country has its own RTGS system. This electronic payment system is normally maintained or controlled by the central bank of a country. The RTGS system is suited for low-volume, high-value transactions. It lowers settlement risk, besides giving an accurate picture of an institution’s account at any point of time.
Check Also
Maha Kumbh and Akhada: क्या होता है अखाड़ा और कौन से हैं भारत के प्रमुख अखाड़े
Maha Kumbh and Akhada 2025: उत्तर प्रदेश के प्रयागराज जिले में 13 जनवरी से महाकुंभ …