Bank Transfers

(1) Real Time Gross Settlement (RTGS)
RTGS is an Inter-Bank Large Value Transfer (Real Time Gross Settlement) system that facilitates the safe and efficient transfer of large value payments between participants or banks. With time it is meant to reduce the use of cheques as a payment system.

Benefits of Real Time Gross Settlement :
(i) Fast and secure mode of transfer of funds (less than 10 minutes)
(ii) It is a better method of monitoring financial transactions by involved parties
(iii) Reduces the risk of frauds and forgeries that exist in other payment systems like cheques
(iv) Reduces the need of bulk movement of cash as physical cash is not
(v) Enhances the safety and efficiency of payments
(vi) It is a tool used by government to stabilize the economy through improved monetary policies

(2) Telegraphic Transfers
This is an acronym for Society for Worldwide Inter-Bank Financial Telecommunication. It provides a means of facilitating interBank financial transactions and is fast, safe and secure and reliable.

Benefits of Telegraphic Transfers:
(i) Anti Money laundering policies
(ii) Anti-terrorists policy
(iii) Know your customer policy
(iv) Automated electronic messages
(v) Standardized financial messages
(vi) Reliable & fast Internationally recognized, accepted and tested
(vii) Facilitates transfer and receipt of funds and other financial messages among Banks worldwide