Real Time Gross Settlement (RTGS) is a system used for the continuous and immediate settlement of funds between banks. In this system, transactions are processed in real time, meaning that payments are settled instantly as they occur, rather than being grouped together for later processing. This reduces the risk of default and enhances the efficiency of the payment system. RTGS is typically used for high-value transactions, such as interbank transfers and large corporate payments. By ensuring that funds are transferred securely and without delay, RTGS helps maintain stability in the financial system and supports economic activities.