Economics • Banking & FinanceEasy
What is the primary objective of introducing the 'Real Time Gross Settlement (RTGS)' system managed by the Reserve Bank of India?
A. To batch and process low-value retail payments at the end of each business day.
B. To provide continuous, real-time settlement of high-value interbank funds transfers on an individual order basis.✓ Correct Answer
C. To clear physical cheques submitted across different commercial bank branches.
D. To facilitate international trade settlements through cryptocurrency integration.
💡 Solution & Explanation
The Real Time Gross Settlement system operated by the Reserve Bank of India ensures continuous, real-time settlement of high-value interbank funds transfers on an individual transaction basis. Conversely, batch processing systems handle retail payments with delayed settlement schedules.
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