RTGS/NEFT Fund remittance facilities

Description
Highlights the how RTGS/NEFT fund remittances work.

RTGS/NEFT
Fund remittance facilities

RTGS(Real Time Gross Settlement)
• • The acronym 'RTGS' stands for Real Time Gross Settlement RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a 'real time' and on 'gross' basis This is the fastest possible money transfer system through the banking channel Settlement in 'real time' means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed 'Gross settlement' means the transaction is settled on one to one basis without bunching with any other transaction Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable

• •





National Electronics Funds Transfer System (NEFT)
• • The acronym “NEFT” stands for National Electronic Funds Transfer. Funds are transferred to the credit account with the other participating Bank using RBI's NEFT service. RBI acts as the service provider and transfers the credit to the other bank's account. NEFT operate on a deferred net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time







Why RTGS / NEFT
• Lower cost of transaction of RTGS/NEFT as compared to cost of transaction and remmitance through draft Draft Issue to Payment – long process, cancellation, duplicate draft issue, revalidation, IOR issues, frauds, Staff accountability Customer Benefit – Immediate credit Low transaction time, no printing, shorten the queues Drafts will be phased out in the coming years



• • •

RTGS & NEFT service availability durations
RTGS transactions will be sent to RBI based on the following schedule: Day Monday to Friday Saturday Start Time 9:00 hrs 9:00 hrs End Time 16:00 hrs 11:30 hrs

NEFT transactions will be sent to RBI based on the following schedule: Day Monday to Friday Saturday Start Time 8:00 hrs 8:00 hrs End Time 16:00 hrs 11:30 hrs

RTGS/NEFT
• For a funds transfer to go through RTGS/NEFT, both the sending bank branch and the receiving bank branch would have to be RTGS/NEFT enabled In rare cases of system failure at RBI/Banks respective softwares, manual intervention is required to clear the Blocked funds NEFT transactions are settled in batches based on the following timings: – 6 settlements on weekdays - at 09:00, 11:00, 12:00, 13:00, 15:00 and 17:00 hrs. – 3 settlements on Saturdays - at 09:00, 11:00 and 12:00 hrs.





Minimum / Maximum amount for RTGS /NEFT transactions

Type

Minimum

Maximum

RTGS

Rs. 1 Lakh

No Limit

NEFT

No Limit

No Limit

Processing Charges/Service Charges for RTGS/NEFT transactions
Amount Service Charge

RTGS

From Rs.1 lakh upto Rs.5 Rs.25/lakh Rs. 5 lakh & above Rs.50/-

NEFT

Upto Rs.1 lakh

Rs.5/-

Rs.1 lakh & above

Rs.25/-

Inward transactions charges for RTGS/NEFT– Free, no charge to be levied

Essential Information needed
• The essential information that the remitting customer would have to furnish to a bank for the remittance to be effected

? Amount to be remitted ? Account number which is to be debited

? Name of the beneficiary bank
? Name of the beneficiary customer ? Account number of the beneficiary customer ? Sender to receiver information, if any ? The IFSC Number of the receiving branch

Transaction Flow : RTGS

No special characters like *, /, @ to be used in any of the fields

Transaction Flow : RTGS contd.. (Outgoing Message (Cheque)

Dimmed fields Cheque No Chq Date

Transaction Flow : RTGS contd.. (Outgoing Message (Cash)

Comm. Amount Remittance Amount excl Comm.

STATUS ENQUIRY OF RTGS MESSAGES for Inward and Outward.

STATUS ENQUIRY OF RTGS MESSAGES for Inward and Outward.contd…

Track the remittance transaction
• It depends on the arrangement between the remitting customer and the remitting bank. Some banks with internet banking facility provide this service. Once the funds are credited to the account of the beneficiary bank, the remitting customer gets a confirmation from his bank either by an e-mail or by a short message on the mobile

• •

Volume of RTGS
• On a typical day, RTGS handles about 60,000 transactions a day for an approximate value of Rs.2,700 billion RTGS/NEFT facility is available in more than 53000 different bank branches throughout country



Delay/Non credit
• • Contact bank / branch. If the issue is not resolved satisfactorily, the Customer Service Department of RBI may be contacted

Thank You



doc_788762848.ppt
 

Attachments

Back
Top