In this paper we introduce and study rectangular torsion theories, i.e. those torsion theories \((\mathbb {C},\mathcal {T},\mathcal {F})\) with \(\mathbb {C}\) a pointed category, where the canonical functor \(\mathbb {C}\rightarrow \mathcal {T}\times \mathcal {F}\) is an equivalence of categories. We prove that rectangular torsion theories are pseudo-algebras for a suitable 2-monad on the 2-category of pointed categories. Interestingly, it turns out that this 2-monad is a 2-categorical counterpart of the monad for rectangular bands, i.e., non-empty semigroups satisfying \(xyz = xz\) . So rectangular torsion theories can be viewed as internal rectangular bands in the 2-category of pointed categories. We also show that a triple \((\mathbb {C},\mathcal {T},\mathcal {F})\) is a rectangular torsion theory if and only if \(\mathbb {C}\) is a pointed category with full replete subcategories \(\mathcal {T},\mathcal {F}\) such that: (i) every morphism between an object in \(\mathcal {T}\) and an object in \(\mathcal {F}\) (in either direction) is a zero morphism; (ii) any object in \(\mathbb {C}\) decomposes as a biproduct of an object in \(\mathcal {T}\) and an object in \(\mathcal {F}\) , and, all biproducts of an object in \(\mathcal {T}\) with an object in \(\mathcal {F}\) exist.