Question Bank - Banking & Financial Services

Here's the question bank on all the banking & financial services topics.

What is the minimum amount which can be remitted through Real Time Gross Settlement (RTGS)?

A.
? 5,00,000
B.
? 2,00,000
C.
? 3,00,000
D.
? 1,00,000

Solution:

The correct answer is ?2,00,000. Rs. 2,00,000 is the minimum amount that can be remitted through Real Time Gross Settlement (RTGS). The acronym "RTGS" stands for Real-Time Gross Settlement, which can be described as a mechanism where fund transfers are settled continuously and in real-time, individually on a transaction basis (without netting). "Real-Time" means the delivery of instructions at the time of receipt; "Gross Settlement" means the settlement of instructions for the transfer of funds happens separately. The RTGS system is intended specifically for large-value transactions.

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