Real Time Gross Settlement is fastest electronic funds transfer system in India where transfer of money takes place from one bank to another on a ‘real time’ and on ‘gross’ basis.
- Settlement in ‘Real Time’ means payment transaction is not subjected to any waiting period.
- The transactions are settled as soon as they are processed.
- ‘Gross Settlement’ means the transaction is settled on one to one basis without bunching with any other transaction.
- Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable.