RTGS ( Real Time Gross Settlement )

RTGS - Real Time Gross Settlement

• RTGS stands for Real Time Gross Settlement

• RTGS system where there is continuous and real-time settlement of fund-transfers, individually on a transaction-by-transaction basis

• The funds settlement takes place in the books of the Reserve Bank of India (RBI), the payments are final and irrevocable

• The system is available on all days on 24x7x365 basis

• The remitter need not use a physical cheque or a demand draft

• Remitter can initiate the remittances from his / her home / place of work using internet banking, if his / her bank offers such service

• RTGS system does not accept future value dated transactions

• RBI limits transaction charges

• With effect from July 01, 2019, RBI has waived the processing charges levied by it for RTGS transactions

1. Inward transactions – Free

2. Outward transactions Rupees 2,00,000 to 5,00,000 not exceeding Rupees 25 (exclusive of tax, if any)

3. Above Rupees 5,00,000 not exceeding 50 (exclusive of tax, if any)

• RTGS transactions are processed continuously on a transaction-by-transaction basis throughout the day

• RTGS is available 24x7x365 with effect from December 14, 2020

• RTGS transactions transfers have no amount limit set by RBI

• RTGS transactions transfers have no amount limit set by RBI

• The minimum amount to be remitted through RTGS is Rupees 2,00,000/- with no upper limit

• With effect from July 01, 2019, RBI has waived the processing charges levied by it for RTGS transactions

• Unique Transaction Reference (UTR) number is a 22-character code used to uniquely identify a transaction in RTGS system 

Regional Rural Bank ( RRB )

• Regional Rural Bank ( RRB ) established on 2nd October 1975

• RRB Act passed in the year 1976

• RRB established as per the recommendation of Narasimhan committee

• To implement 20 point programme announced by former prime minister Indira Gandhi the central Govt decided  to start RRB in the Nation

• The share capital contribution by the central government , state government and sponcer bank in the ratio 50 : 15 : 35

• Central government contributed RRB through NABARD

• First RRB in India is Moradabad in UP

• Kerala Gramin Bank is the largest RRB in India 

• Number of RRB in India is 43