Full form of RTGS|| History, operation, facts, pros & con!!

Full form of RTGS

Full form of RTGS: Real-time gross settlement.

The RTGS is defined as a system through which money is transferred from one bank account to the other. The transfer occurs on a real-time and gross basis. Apart, from electronic cash. The system also supports the transfer of funds and securities. Coming to the meanings of real-time and gross. 

Moreover, real-time refers to the implementation of actions immediately. It signifies real-time and instant operations. However, the gross system refers to the sorting methods. It makes sure that the transfer of funds and securities. Occurs individually, and in a safe and sound manner. RTGS is the fastest though the safest methods of money transfer. Moreover, banks highly recommend this system of money transfer. Most importantly, for transferring heavy and even light amount of money.


The history of RTGS dates back to 1985. Moreover, banks of the late '90s were the earliest to use this method. There were only three central banks, that started the system of RTGS in 1985. Which gradually extended to a network of 90 banks. Moreover, by the end of 2005, exactly 90 central banks were there. Who has started the system of RTGS among them. The firstmost system related to the RTGS was the US Fedwire system. Moreover, it was old enough to be mentioned in history. This method was active only among the US-based federal banks. The entire process was done via telegraph system.

Banks of that kind were known to accept electronic wire transfers only. Thereafter, other systems began to develop in other countries too. Named as Sagittaire for the french system, Chaps for the UK based system and a ton of other. However, each of them was country-specific, though the method was the same. All of them gave rise to the same system. Known as the system of RTGS. However, knowing the full form of RTGS is worth it.


The RTGS system for money transfer is completely handled by the central banks. The reason behind it is that central banks are considered to be the economic backbone. However, it is a great decision to assign those banks with the RTGS system. Unlike other banks, central banks have that strength. To handle huge economic transactions for the entire country. Without affecting the national economy by any means. Central banks are chosen to maintain a healthy and balanced national finance system.

The reason, central banks have accepted the method of RTGS:

  • The central banks operate on the national level. They are spread all over the country. They have that knowledge to adopt methods like RTGS. Since they are competing with the global economical markets. Adopting any system like the RTGS is simply intentional.
  • It offers a wide system of other country's RTGS also. This very fact makes the decision beneficial for the central banks.
  • Moreover, the RTGS system helps all other central banks to gain knowledge and expertise. In this particular domain of fund transfer.
  • Also, the system is independent. It doesn't depend upon the central banks for its development. The system of RTGS is completely shareable. It is capable of being shared worldwide. That also helps to gain knowledge and expertise. moreover, knowing the full form of RTGS is worth it.


  • The RTGS system is completely online. It supports the transfer of funds (money and securities) in the real-time.
  • The entire process is automatic, instant and user friendly. Banks highly recommend the process for performing electronic transactions.
  • The prime objective of using the system of RTGS is to transfer heavy amounts virtually. Moreover, the system supports immediate transfers.
  • The entire process can be performed on an individual process. One should know that the process is fully secure to use.
  • However, organisations and companies can use this transaction method on a gross basis.
  • The electronic transactions are done via the system. Provides completely free transactions. The process doesn't charge any type of transaction fees.
  • It is the most relevant system for modern-day consumers. Its feature of net banking makes it so.


  • Above all, it is one of the most secured and fastest methods to transfer money between bank accounts.
  • The facility is available each and every day of a week. Though fluctuations may appear regarding the bank types.
  • Most importantly, the fund transfer mechanism is instant and immediate. It is also the most user-friendly way of tranfering funds.
  • The transfer is completely electronic. Not a single piece of paper is required. And not a single second of time is wasted.
  • Doesn't demands in person work. The beneficiary is not required to visit the bank in person. To submit the sum of money he/she wanna deposit.
  • RTGS is known to use net banking in an effective way. Every single transaction can be handled via internet banking services.


Above all, the transaction is never tracked by the system. Moreover, the central bank is only near the brim. Though, it has only implemented the positive confirmation feature in its services. Consequently, only the remitting bank gets the transfer confirmation. From the beneficiary bank, which is forwarded by the central bank.


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