RTGS System

What is RTGS System?

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.

How RTGS is different from National Electronics Funds Transfer System (NEFT)?

NEFT is also 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 at a particular point of time. All transactions are held up till that time. For example, : NEFT settlement takes place 6 times a day during the week days (9.30 am, 10.30 am, 12.00 noon, 1.00 pm,3.00 pm and 4.00 pm) and 3 times during Saturdays {9.30 am, 10.30 am and 12.00 noon). Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time, contrary to this, in RTGS, transactions are processed continuously throughout the RTGS business hours.

Is there   any   minimum / maximum amount stipulation for RTGS transactions?

RTGS   system   is   primarily for large value transactions, the minimum amount to be remitted through RTGS is Rs. 1 lakh. There is no upper ceiling for RTGS transactions. No minimum or maximum stipulation has been fixed for NEFT transactions.

What is the time taken for effecting funds transfer from one account to another under RTGS?

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.

Would   the   remitting   customer get acknowledgement   of   money   credited beneficiary's account?

The remitting bank receives a message for Reserve Bank that money has been credited receiving bank, based on this the remitting branch advice the remitting customer that money has been delivered to the receiving bank.

Would the remitting customer get back the money if it is not credited to the beneficiary's account? When?

Yes, it is expected that the receiving bank will credit the account of the beneficiary instantly. If the money cannot be credited for any reason, the receiving bank would have to return the money to the remitting bank within 2 hours. Once the money is received back by the remitting bank, the original debit entry in the customer's account is reversed.

Till what time RTGS service window is available?

The RTGS service window for customers transact is available from 9.00 hours to 16.00 hours on days and from 9.00 hours to 12.00 noon on Saturdays i.e. to accept the customer transactions for settler at the RBI during 9.00 hours to 16.00 hours on week days and between 9.00 hours and 12.00 noon/on Saturday. However, the timings between these hours would vary depending on the customer timings the branches have, for inter-bank transactions, the service window is available from 9.00 hours to 17.30 hours on week days and from 9.00 hours to/14.00 hours on Saturdays.

What about Processing Charges/Service Charges for RTGS transactions?

While RBI has waived its processing; charges for all electronic payment products till March 31.2 of service charges by banks is left to the disc the respective banks. The bank-wise charges levied   are   available   on   the   RBI website www.rbi.org.in.

What is the essential information that the remitting customer would have to furnish to a bank for the remittance to be effected?

The remitting customer has to furnish the following information to a bank for affecting a RTGS remittance:

Amount to be remitted

His 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 code of the receiving branch

How would one know the IFSC code of the receiving branch?

The beneficiary customer can obtain the IFSC code from his branch. The IFSC code is also available in the cheque leaf. This code number and bank branch details can be communicated by the beneficiary to the remitting customer.

Do all bank branches in India provide RTGS service?

No, all the bank branches in India are not RTGS enabled. As on April 30. 2008 more than 44,000 bank branches are RTGS enabled. The list of such branches is   available   on   RBI   websitettp://www. rbi.org.in/Scripts/Bs_view RTGS. aspx

Is there any way that a remitting customer can track the remittance transaction?

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 by a short message on the mobile.

How can a remitting customer know whether the bank branch of the beneficiary accepts remittance through RTGS?

For a funds transfer to go through RTGS, both the sending bank branch and the receiving bank branch should have to be RTGS enabled. The lists are readily available at all RTGS enabled branches. Besides, the Information is available at RBI websitettp://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/Listof RTGSBanks.xls

Considering that more than 44,000 branches at more than 5000 cities / towns / taluka places are covered under the RTGS system, getting this information would not be difficult.

How much volume and value of transactions are routed through RTGS on a typical day?

On a typical day, RTGS handles about 30,000 transactions a day for an approximate value of Rs. 2, 00,000 crore.

Whom do I can contact, in case of non-credit or delay of credit to the beneficiary account?

Contact your bank/branch.

If the issue is not resolved satisfactorily, the Customer Service Department of RBI maybe contacted at -

The Chief General Manager,

Reserve Bank of India,                                                  

Customer Service Department,

1st Floor, Amar Building, Fort,                                 

Mumbai 40000l

Or

Send an e-mail to cgmcsd@ rbi.org.in