The Full form of RTGS is Real Time Gross Settlement. RTGS can be defined as the continuous or real-time settlement of funds individually on an order by order basis. It is used to transfer money or securities from one bank to another on a real time and on gross basis without netting. ‘Real Time’ means the processing of instructions at the time they are received rather than at some later time and ‘Gross Settlement’ means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). RTGS system is generally used for high-value money transactions that require immediate clearing and the minimum amount to be remitted through RTGS is Rs 2 lakh. RTGS is usually operated by the Central bank of the countries and is not based on physical exchange of money. It reduces the amount from X bank account and adds this amount in the account of Y. If the funds are not credited to the beneficiary’s account for any reason like account does not exist, account frozen etc., the funds will be returned to the originating bank within one hour or before the end of the RTGS Business day, whichever is earlier.