What is the meaning of RTDS?
RTGS is the "Real Time Gross Settlement System". As the name suggests, it is a "real time" system where transactions are settled on "Gross" basis i.e netting of transaction is not done. RTGS offers the fastest method to transfer funds from one bank to another bank ot from one branch to another branch. As per RBI norms the funds must be transferred within two hours of the deposit of funds by the customer. In case of delay, panalty at the rate of 2% over repo rate is payable.