RTGS stands for Real-Time Gross Settlement and is an inter-bank transfer system used throughout Thailand. It was developed in 1932 by the Royal Institute of Thailand. The system is used in government publications and on road signs. It is similar to the ISO standards. However, the use of RTGS is inconsistent, even within the government. In this article, we will cover some of the basics. Read on to learn how RTGS works and why it is used.
RTGS stands for Real-Time Gross Settlement, a system that allows for instant money transfers and security between two banks. Unlike NEFT, which is based on net settlements, RTGS enables instant payment transfers and is controlled by central banks in most countries. To learn more about RTGS, start by adding a beneficiary. To add a beneficiary, log in to your net banking account, select the type of beneficiary and click “Add Beneficiary.”
The RTGS system allows money transfers in 30 seconds, and the money is returned to the source bank after one hour. Customers who experience delays will receive compensation at the current repo rate plus 2%. RTGS requires that sending and receiving bank branches be enabled by the RBI. The RBI maintains a list of bank branches that are RTGS-enabled. This is an important aspect of RTGS.
Although the US Fedwire was the first system to launch an RTGS-type system, other developed nations followed suit a few years later. In the United Kingdom, a system called CHAPS was introduced in 1984, and France introduced a similar system, known as SAGITTAIRE. Over the next several years, other developed countries began implementing their RTGS systems. Each system differed in operation and was based on existing processes in the country.
Unlike NEFT, RTGS is a secure, timed system that allows users to send money from one bank to another. Unlike NEFT, there is no amount cap on RTGS transactions. This makes RTGS a preferred option for international and domestic transfers. You can use RTGS as part of your overall banking strategy. It’s convenient, secure, and legal, and it’s available around the clock.
RTGS is a system used for high-value fund transfers. Unlike traditional methods, RTGS transfers are irrevocable and require no physical visit to the recipient. Unlike paper-based transfers, RTGS transactions can be completed quickly and easily. They also help you keep track of recent account activity. This is why the RTGS system is becoming a popular choice amongst bank customers.
RTGS transfers funds in real-time and is best used for transfers of more than Rs 2 lakh. As a result, it doesn’t require a certain processing method and settles funds instantly. The entire process is much faster and easier than traditional methods. And RTGS is one of the fastest ways to send money internationally. It is also the most secure way to send money between financial institutions and banks.