Real Time Gross Settlement is managed by _______.

Question

Question

This question was previously asked in

JKSSB SI Official Paper (Held On: 12 Dec 2022 Shift 2)

Answer 1

The correct answer is Reserve Bank of India.

Key Points

The Real Time Gross Settlement (RTGS) system is managed by the Reserve Bank of India (RBI).
RTGS is used for the instant transfer of funds between banks on a real-time and gross basis.
It is primarily meant for large value transactions, with a minimum amount of Rs. 2 lakhs.
The system is operational on all days except for the second and fourth Saturdays, and Sundays.
RTGS transactions are settled continuously throughout the day as opposed to batch processing.

Additional Information

National Electronic Funds Transfer (NEFT):
- NEFT is another electronic funds transfer system managed by the RBI.
- It operates on a deferred net settlement basis, with settlements taking place in half-hourly batches.
- Unlike RTGS, NEFT allows the transfer of funds with no minimum or maximum limit.
Immediate Payment Service (IMPS):
- IMPS is an instant interbank electronic funds transfer service available 24/7, including holidays.
- It is managed by the National Payments Corporation of India (NPCI).
Unified Payments Interface (UPI):
- UPI is a real-time payment system that facilitates interbank transactions via a single mobile application for accessing different bank accounts.
- It is also managed by the NPCI.
Cheque Truncation System (CTS):
- CTS is an image-based cheque clearing system to improve the efficiency and speed of cheque processing.
- Managed by the RBI, it reduces the physical movement of cheques.