Which among the following maintains Real Time Gross Settlement ?

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Reserve Bank of India

Asian Development Bank

World Bank

State Bank of India

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UPSC Combined Section Officer – 2024

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The Reserve Bank of India (RBI) maintains Real Time Gross Settlement (RTGS) in India.

Real Time Gross Settlement (RTGS) is a system where there is continuous (real-time) settlement of individual funds transfer orders. ‘Gross Settlement’ means the settlement of funds transfer instructions occurs individually (on an instruction-by-instruction basis). Because RTGS is a real-time system, transactions are settled as soon as they are processed.
In India, the RTGS system is operated and maintained by the central bank, the Reserve Bank of India (RBI). It is used for large-value interbank transactions.

RTGS is one of the prominent payment systems in India, alongside the National Electronic Funds Transfer (NEFT) system. While RTGS is primarily for large-value transactions, NEFT is for smaller value transactions and operates on a deferred net settlement basis. Both systems are critical components of the modern payment infrastructure in India, managed by the RBI. Commercial banks (like State Bank of India) are participants in these systems, facilitating transfers for their customers.

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