RTGS or BD-RTGS stands for Real-time Gross Settlement in its full form. What is RTGS? The simplest explanation is that it is an electronic fund settlement system that allows users to move funds from their own accounts to any other bank account holder or transfer funds seamlessly.
The Bangladesh Bank launched the RTGS to the local payment ecosystems on December 19, 2015. Since then, RTGS has been able to open a new door to the country's banking sector and has been acknowledged as a safe and fast payment method.
The Real-Time Gross Settlement -RTGS system is an interbank payment system. It still operates within the parameters of the local region and uses local currencies. However, international currencies will be added to this payment method very soon.
This payment procedure now connects more than 10,888 virtual branches from around 59 banking institutions.
BEFTN may take one or two working days to execute a transaction, but the RTGS fund transfer system allows for real-time or immediate transfers.
BEFTN usually has no restriction on the amounts of transactions you can do, however, the RTGS payment method has a limit of minimum one lac per transaction.
Through RTGS, a customer can make various types of transactions online or in person. A customer can go to the bank and do RTGS with the help of bank employees. However, in this age of FinTech, a customer will be able to perform RTGS from his smartphone at home. For this, the customer's phone only needs to have his bank's mobile app.
The total number of RTGS transactions between July and September 2021 was 11,54,98, with a financial value of Rs 5,61,843 crore. In the fiscal year 2019-2020, 1.92 million transactions of Rs. 12,220 billion were conducted using the Real Time Gross Settlement (RTGS) system. (Source: Bangladesh Bank)
Among all the initiatives by Bangladesh government, the Real-Time Gross Settlement (RTGS) system is one of the most significant ones in order to encourage the cashless payment system.