difference between rtgs, neft & ecs

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12 July 2010 can anybody say me the difference between rtgs, neft & ecs?

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 July 2010 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.

EFT and NEFT are electronic fund transfer modes that 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. 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.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 July 2010 ECS (Electronic Clearing Service) is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.

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Rahul Gupta

Rahul Gupta (Expert)
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13 July 2010 Very Well Explained by Sanjay Ji......

Also One major difference is that RTGS can be used for High Value Clearing i.e over Rs. 1 Lakh and EFT is used for amounts less than Rs.1 Lakh.
For some detail about the definition check this link >

http://www.indiastudychannel.com/resources/51932-Know-about-RTGS-NEFT-EFT-ECS-Banking-System.aspx

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