RAS question
RTGS stands for:
Correct answer: (D) Real Time Gross Settlement.
RTGS stands for Real Time Gross Settlement, a funds-transfer system in which bank transfers are settled in real time and individually on a transaction-by-transaction basis.
Explanation
RTGS expands to Real Time Gross Settlement. The RBI explains it as a system for continuous, real-time settlement of fund transfers, where each transfer is settled individually on a transaction-by-transaction basis, without netting. In RTGS, money moves from one bank to another on a real-time and gross basis. "Real Time" refers to processing instructions when they are received, while "Gross Settlement" means each funds-transfer instruction is settled separately. Therefore, option D is the only expansion that preserves both essential parts of the term: Time and Gross.
Why the other options are wrong
- (A) Real Time General Settlement is wrong because the RBI expansion uses Gross, not General, to describe individual transaction-wise settlement.
- (B) Real Transaction Gross Settlement is wrong because the RBI expansion uses Time, referring to processing instructions when they are received, not Transaction.
- (C) Reserve Transfer Gross System is wrong because it replaces Real Time with Reserve Transfer and Settlement with System, so it does not match the RBI expansion.
Concept
This tests basic banking and payment-system terminology under Indian Economy. RAS often asks such abbreviations because they connect financial inclusion, banking infrastructure and everyday monetary transactions.