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Real Time Gross Settlement (RTGS) System is becoming very popular among the business community in India. What are the reasons for this?
I. This is the fastest possible money transfer system through the banking channel
II. The transaction is settled on one to one basis without bunching with any other transaction
Select the correct code:
Only I
Only II
Both I & II
Neither I nor II
Both the statements are correct regarding Real Time Gross Settlement (RTGS) System. RTGS- It stands for Real Time Gross Settlement. It means that funds transfers happen immediately, in real time. Instructions are processed at the time they are received rather than later. 'Gross Settlement' means the settlement of funds transfers occur on an instruction by instruction basis.
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