RTGS Facility in India

Q.  As per the RBI Guidelines, on which of the following days RTGS facility will not operate?
- Published on 07 Feb 17

a. 1st Monday & 4th Saturday of the month
b. 2nd Saturday & 4th Saturday of the month
c. All Saturdays & 4th Saturday of the month
d. All Saturdays & 2nd Saturday of the month

ANSWER: 2nd Saturday & 4th Saturday of the month
 
The Reserve Bank has said that the Real-time gross settlement - RTGS system will not be operated on second and fourth Saturdays with banks observing public holiday on those days.

The minimum amount to be remitted through RTGS is Rs 2 lakh while there is no upper ceiling.

Real-time gross settlement systems (RTGS) are specialist funds transfer systems where the transfer of money or securities takes place from one bank to another on a "real time" and on a "gross" basis.

"Gross settlement" means the transaction is settled on one-to-one basis without bundling or netting with any other transaction.

"Settlement" means that once processed, payments are final and irrevocable.

RTGS systems are typically used for high-value transactions that require and receive immediate clearing.

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