Yes, RTGS (Real-Time Gross Settlement) is designed to be an instant transfer system.
While not technically instantaneous in the absolute sense of zero delay, RTGS transactions are processed in real-time. This means that the transfer of funds and crediting to the beneficiary's account occurs almost immediately upon initiation, typically within seconds, provided all details are correct and the system is functioning normally. This near-instant settlement makes it suitable for high-value transactions requiring immediate finality.
Here's a breakdown:
-
Real-Time Processing: RTGS systems process transactions continuously, as they are received, instead of accumulating them for batch processing at specific intervals.
-
Gross Settlement: Each transaction is settled individually on a gross basis, meaning there is no netting or aggregation of transactions. This ensures immediate and final settlement.
-
High-Value Transactions: RTGS is generally used for large-value transactions where immediate transfer is crucial. Minimum and maximum transaction amounts can vary by country and specific bank policies.
-
Final and Irrevocable: Once an RTGS transaction is settled, it is considered final and irrevocable.
In contrast to NEFT (National Electronic Funds Transfer), which uses batch processing and may take some time for settlement, RTGS offers significantly faster transfer times.
Therefore, RTGS provides a close-to-instant transfer experience, making it a preferred choice when immediate settlement is required.
