No, RTGS (Real Time Gross Settlement) is not a cheque. However, a cheque may be involved depending on how you initiate the RTGS transaction.
According to the provided reference, here's a breakdown:
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RTGS from a Bank Branch: Yes, a cheque is mandatory if the RTGS transaction originates from a bank branch. You would typically fill out an RTGS form and submit it along with a cheque for the amount you wish to transfer. The cheque essentially authorizes the bank to debit your account.
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RTGS via Electronic Media (Internet Banking/Mobile App): No cheque is required. When using online banking or a mobile app to initiate an RTGS transfer, the authorization happens electronically through your login credentials and transaction confirmation process (e.g., OTP).
RTGS vs. Cheque: Key Differences
| Feature | RTGS | Cheque |
|---|---|---|
| Nature | Electronic fund transfer | Paper-based payment instrument |
| Speed | Real-time (or near real-time) | Can take 1-3 business days to clear |
| Process | Funds transferred electronically between banks | Cheque presented to bank for payment |
| Cheque Needed? | Potentially, if initiating from a bank branch. | Yes, fundamental to the process |
In summary, while a cheque isn't inherently part of the RTGS system itself, it can be a necessary component when initiating an RTGS transaction at a bank branch. When using electronic channels, no cheque is needed.
