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Real Time Gross Settlement System

Real time gross settlement system is used in banks. In this system, all processing of payment and settlement are done through electronic way. It means when you pay online, same time, it will be debited in your bank account and credited in the account to whom you have paid. Following is the graph which shows its process.


RBI has written some FAQ which you should read for more learning of this concept at here.
In above graph you are seeing settlement authority, actually this is central bank. In India, RBI is settlement authority. RBI takes the help of Institute of research and development in banking technology for adjusting the debit and credit amount.

RTGS Vs NEFT


As per RBI, following are main difference of RTGS and NEFT

Minimum/maximum amount for RTGS/NEFT transactions under Retail Internet Banking? 

TypeMinimumMaximum
RTGSRs.2 LakhsRs.5 Lakhs
NEFTNo MinimumRs.5 Lakhs

minimum/maximum amount for RTGS/NEFT transactions under Corporate Internet Banking? 

TypeMinimumMaximum
RTGSRs.2 LakhsRs.50 lakhs for Vyapaar and
Rs.500 crores for Vistaar
NEFTNo MinimumRs.50 lakhs for Vyapaar and
Rs.500 crores for Vistaar

At what time during the day/week the RTGS & NEFT services are available?

RTGS transactions are sent to RBI as per the following schedule:

DayStart TimeEnd Time
Monday to Friday9:00 hrs16:30 hrs
Saturday9:00 hrs13:30 hrs

NEFT transactions will be sent to RBI based on the following schedule:

DayStart TimeEnd Time
Monday to Friday8:00 hrs18:30 hrs
Saturday8:00 hrs12:30 hrs

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Accounting Education: Real Time Gross Settlement System
Real Time Gross Settlement System
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Accounting Education
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