Frequently Asked Questions (FAQ) on
Real Time Gross Settlement (RTGS) System
Q1. What
is RTGS System?
Ans. The acronym 'RTGS'
stands for Real Time Gross Settlement, which can be defined as the continuous
(real-time) settlement of funds transfers individually on an order by order
basis (without netting). 'Real Time' means the processing of instructions at
the time they are received rather than at some later time; 'Gross Settlement'
means the settlement of funds transfer instructions occurs individually (on an
instruction by instruction basis). Considering that the funds settlement takes
place in the books of the Reserve Bank of India, the payments are final and
irrevocable.
Q2. How RTGS is
different from National Electronics Funds Transfer System (NEFT)?
Ans. NEFT is an electronic
fund transfer system that operates on a Deferred Net Settlement (DNS) basis
which settles transactions in batches. In DNS, the settlement takes place with
all transactions received till the particular cut-off time. These transactions
are netted (payable and receivables) in NEFT whereas in RTGS the transactions
are settled individually. For example, currently, NEFT operates in hourly
batches. [There are twelve settlements from 8 am to 7 pm on week days and six
settlements from 8 am to 1 pm on Saturdays.] Any transaction initiated after a
designated settlement time would have to wait till the next designated
settlement time Contrary to this, in the RTGS transactions are processed
continuously throughout the RTGS business hours.
Q3. Is there any
minimum / maximum amount stipulation for RTGS transactions?
Ans. The RTGS system is
primarily meant for large value transactions. The minimum amount to be remitted
through RTGS is ` 2 lakh. There is no upper ceiling for RTGS transactions.
Q4. What is the
time taken for effecting funds transfer from one account to another under RTGS?
Ans. Under normal
circumstances the beneficiary branches are expected to receive the funds in
real time as soon as funds are transferred by the remitting bank. The
beneficiary bank has to credit the beneficiary's account within two hours of
receiving the funds transfer message.
Q5. Would the
remitting customer receive an acknowledgement of money credited to the
beneficiary's account?
Ans. The remitting bank
receives a message from the Reserve Bank that money has been credited to the
receiving bank. Based on this the remitting bank can advise the remitting
customer through SMS that money has been credited to the receiving bank.
Q6. Would the
remitting customer get back the money if it is not credited to the
beneficiary's account? When?
Ans. Yes. Funds, received by
a RTGS member for the credit to a beneficiary customer’s account, will be
returned to the originating RTGS member within two hours of the receipt of the
payment at the PI of the recipient bank or before the end of the RTGS Business
day, whichever is earlier, if it is not possible to credit the funds to the
beneficiary customer’s account for any reason e.g. account does not exist, account
frozen, etc. Once the money is received back by the remitting bank, the
original debit entry in the customer's account is reversed.
Q7. Till what time
RTGS service window is available?
Ans. The RTGS service window
for customer's transactions is available to banks from 9.00 hours to 16.30
hours on week days and from 9.00 hours to 14:00 hours on Saturdays for
settlement at the RBI end. However, the timings that the banks follow may vary
depending on the customer timings of the bank branches.
Q8. What
about Processing Charges / Service Charges for RTGS transactions?
Ans. With a view to
rationalize the service charges levied by banks for offering funds transfer
through RTGS system, a broad framework has been mandated as under:
(a)
Inward transactions – Free, no charge to be levied.
(b)
Outward transactions 2 lakh to 5 lakh not exceeding 30 per
transaction;
Above 5 lakh – not exceeding 55 per transaction.
Above 5 lakh – not exceeding 55 per transaction.
Q9. What is the
essential information that the remitting customer would have to furnish to a
bank for the remittance to be effected?
Ans. The remitting customer
has to furnish the following information to a bank for initiating a RTGS
remittance:
1. Amount to be remitted
2. Remitting customer’s
account number which is to be debited
3. Name of the beneficiary
bank and branch
4. Name of the beneficiary
customer
5. Account number of the
beneficiary customer
6. Sender to receiver
information, if any
7. The IFSC Number of the
receiving branch
Q10. How would one know the
IFSC code of the receiving branch?
Ans. The beneficiary customer
can obtain the IFSC code from his bank branch. The IFSC code is also available
on the cheque leaf. The list of IFSCs is also available on the RBI website (http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB0112.xls). This code number and
bank branch details can be communicated by the beneficiary to the remitting
customer.
Q11. Do all bank branches in
India provide RTGS service?
Ans. No. All the bank
branches in India are not RTGS enabled. Presently, there are more than 100000
RTGS enabled bank branches. The list of such branches is available on RBI
website at: http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB0112.xls
Q12. Is
there any way that a remitting customer can track the remittance transaction?
Ans. It would depend 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 SMS. Customer may also
contact RTGS / NEFT Customer Facilitation Centres of the banks, for tracking a
transaction.
Q13. Whom do I can contact, in
case of non-credit or delay in credit to the beneficiary account?
Ans. Contact your bank /
branch. If the issue is not resolved satisfactorily, complaint may be lodged to
the Customer Service Department of RBI at -
The
Chief General Manager
Reserve Bank of India
Customer Service Department
1st Floor, Amar Building, Fort
Mumbai – 400 001
Or send email
Reserve Bank of India
Customer Service Department
1st Floor, Amar Building, Fort
Mumbai – 400 001
Or send email
Q14. How can a remitting
customer know whether the bank branch of the beneficiary accepts remittance
through RTGS?
Ans. For a funds transfer to
go through RTGS, both the sending bank branch and the receiving bank branch
would have to be RTGS enabled. The lists are readily available at all RTGS
enabled branches. Besides, the information is available at RBI website (http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB0112.xls). Considering that more
than 100000 branches at more than 20,000 cities / towns / taluka places are
covered under the RTGS system, getting this information would not be difficult.
Frequently Asked Questions (FAQ) on
National Electronic Funds Transfer
(NEFT) System
Q.1. What is NEFT System?
Ans. National Electronic
Funds Transfer (NEFT) system is a nation wide funds transfer system to
facilitate transfer of funds from any bank branch to any other bank branch.
Q.2. Are all bank
branches in the system part of the funds transfer network?
Ans. No. As on January 31,
2007, 18500 branches of 53 banks are participating. Steps are being taken to
widen the coverage both in terms of banks and branches.
Q.3. Whether the system
is centre specific or has any geographical restriction?
Ans. No, there is no
restriction in the number of centres or of any geographical area. The system
uses the concept of centralised accounting system and the bank's account that
are sending or receiving the funds transfer instructions, gets operated at one
centre, viz, Mumbai only. The individual branches participating in NEFT could
be located anywhere across the country, as detailed in the list provided on RBI
website.
Q.4. What is the funds
availability schedule for the beneficiary?
Ans. The beneficiary gets the
credit on the same Day or the next Day depending on the time of settlement.
Q.5. How does the NEFT
system operate?
Ans. Step-1: The remitter
fills in the NEFT Application form giving the particulars of the beneficiary (bank-branch,
beneficiary's name, account type and account number) and authorises the branch
to remit the specified amount to the beneficiary by raising a debit to the
remitter's account. (This can also be done by using net banking services
offered by some of the banks)
Step-2:
The remitting branch prepares a Structured Financial Messaging Solution (SFMS)
message and sends it to its Service Centre for NEFT.
Step-3:
The Service Centre forwards the same to the local RBI (National Clearing Cell,
Mumbai) to be included for the next available settlement. Presently, NEFT is
settled in six batches at 0930, 1030, 1200, 1300, 1500 and 1600 hours on
weekdays and 0930, 1030 and 1200 hours on Saturdays
Step-4:
The RBI at the clearing centre sorts the transactions bank-wise and prepares
accounting entries of net debit or credit for passing on to the banks
participating in the system. Thereafter, bank-wise remittance messages are
transmitted to banks.
Step-5:
The receiving banks process the remittance messages received from RBI and
affect the credit to the beneficiaries' accounts.
Q.6. How is this NEFT
System an improvement over the existing RBI-EFT System?
Ans. The RBI-EFT system is
confined to the 15 centres where RBI is providing the facility, whereas there
is no such restriction in NEFT as it is based on the centralised concept. The
detailed list of branches of various banks participating in NEFT system is
available on our website. The system also uses the state-of-the-art technology
for the communication, security etc, and thereby offers better customer
service.
Q.7. How is it different
from RTGS and EFT?
Ans. NEFT is an electronic
payment system to transfer funds from any part of country to any other part of
the country and works on net settlement basis, unlike RTGS that works on gross
settlement basis. While EFT is restricted to the fifteen centers (only where
RBI offices are located), NEFT is a nation-wide electronic fund transfer
system.
Q.8. Any limit on the
amount of individual transaction?
Ans. There is no value limit
for individual transactions.
Q.9. What about
Processing Charges/Service Charges
Ans. While RBI has waived the
processing charges till March 31, 2008, levy of service charges by banks is
left to the discretion of the respective banks. The bank-wise details of
charges levied are available on the RBI website.
Q.10. How will I know which are the
branches participating in the NEFT?
Ans. RBI publishes the list
of bank branches participating in the NEFT on its website i.e. www.rbi.org.in.
Q.11. What is IFS Code (IFSC)? How it
is different from MICR code?
Ans. Indian Financial System
Code (IFSC) is an alpha numeric code designed to uniquely identify the
bank-branches in India. This is 11 digit code with first 4 characters
representing the banks code, the next character reserved as control character
(Presently 0 appears in the fifth position) and remaining 6 characters to
identify the branch. The MICR code has 9 digits to identify the
bank-branch.
Q.12. How will I know, what is the
IFS Code of my bank-branch?
Ans. RBI had since advised
all the banks to print IFSC on cheques leaves issued to their customers. You
may also contact your bank-branch and get the IFS Code of that branch.
Q.13. Whom I can contact, in case of
non-credit or delay in credit to the beneficiary account?
Ans. Contact your
bank/branch. If the issue is not resolved satisfactorily, the Customer Service
Department of RBI may be contacted on cgmcsd@rbi.org.in or
write to:
The
Chief General Manager,
Reserve
Bank of India,
Customer
Service Department,
1st
Floor, Amar Building, Fort,
Mumbai-400001
Q.14. Is it necessary to have a bank
account to originate the NEFT transaction?
Ans. Yes, NEFT is an account
to account funds transfer system.
Q.15. Is it necessary that the
beneficiary should have an account at the destination bank-branch?
Ans. Yes, NEFT is an account
to account funds transfer system.
Q.16. Can I receive foreign
remittances through NEFT?
Ans. This system can be used
only for remitting Indian Rupee among the participating banks within the
country.
Q.17. Can I send remittances abroad
using the NEFT?
Ans. No
Q.18. Can I originate a transaction to
receive funds from another account?
Ans. No
Q.19. Can I send/receive funds
from/to NRI accounts?
Ans. Yes, subject to
applicability of provisions of FEMA
Q.20. Would the remitting customer
receive an acknowledgement of money having been credited to the beneficiary's
account?
Ans. Acknowledgement is
generated for the customer at his branch informing him that his remittance is
received by the beneficiary. However the mode of communication would depend on
the facility provided by bank / branch.
Q.21. Would the remitting customer
get back the money if it is not credited to the beneficiary’s account?
Ans. Yes, the remitting
customer gets back the money if it is not credited to the beneficiary account.
Q.22. Till what time NEFT service
window is available?
Ans. There are six
settlements at 0930, 1030, 1200, 1300, 1500 and 1600 hours on weekdays and
0930, 1030 and 1200 hours on Saturdays.
Q.23. What is the essential
information that the remitting customer would have to furnish for the
remittance to be effected?
Ans. The essential
information that the remitting customer has to furnish is:
· Beneficiary details such
as beneficiary name and account number
· Name and IFSC of the
beneficiary bank branch.
Q.24. Is there any way a remitting
customer can track the remittance transaction?
Ans. The remitting customer
can track the remitting transaction through the remitting branch only, as the
remitting branch is informed about the status of the remitted transactions.
Precautions
when using NEFT and RTGS Transfer Systems
An
electronic funds transfer (EFT) is generally considered both secure and safe
since they have built-in security features. However, since they are often
coursed through different communication mechanisms, it is also important to
understand what precautions you need to take to stay safe.
Precautions:
· Ignore emails supposedly
coming from your bank, from PayPal or from you credit card service provider
informing you that your account with them has been compromised. Usually, this
also comes with an official-looking request and forms to fill up wherein you
will provide all your personal information. The standard procedure observed in
cases where such information is needed is to submit them directly at the
secured website or at the bank itself.
· Avoid downloading
freebies like software applications since this is how malware or spyware gets
attached to your PC. Spyware can extract information from your computer without
your knowing it and can surreptitiously relay your info to the author of the
spyware.
· In case your credit
cards, debit cards or ATM cards have been stolen, report the matter immediately
to the credit company or to your depository bank to block all future
transactions.
· Make it a point to
review your credit reports periodically if you frequently or regularly make
purchases via online stores. Particularly if your credit purchases are your
most common electronic transactions. Report any unauthorized transactions or
cash advances immediately to the credit reporting bureau and to your credit
card service provider.
· Install additional
security software if necessary. Some protection features may include those that
can detect and block unusual activities going on in your PC.
· Keep yourself up to date
with the latest trends on how cybercrimes are carried out and know the
precautionary measures to take.
