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RTGS

DT Fundas - Tarun rustagi ( Author) (1150 Points)

25 June 2010

dear all

i know that rtgs is a kind of facility provided by the bank to it,s customer. but i want to know whether this facility is allowed only on current accounts or also on savings account. i want to know how to use this facility i mean is it allowed for all customers or is there any criteria.gai

thanks & regards

tarun rustagi

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13 Replies

Prasad (CA Final) (140 Points)
Replied 25 June 2010

HI Taran, RTGS is a facility offered for C/A holders only...... There is a specific format of bak in which we need to fill up the detaisl ......main parts contains NEFT ocde of both banks and amount and to from banks. Upon the submission of form, bank issues UTR code and usually this gets happen in 2-3 hurs ...though bank promises 1/2 hour.......not that there is cut off time period for RTGS and it is decided by RBI .....but this time keeps on extending every day...accordingly u have to inquire at bank.......

Thats it.........its done

1 Like

Ramesh (Manager - Finance & Accounts) (92 Points)
Replied 25 June 2010

Real Time Gross Settlement (RTGS) is applicable all Savings Bank, Currnet Account, Over Draft Account, and Cash Credit Account etc.

Ramesh P.

1 Like

RAMESH KUMAR VERMA ( CS PURSUING ) (43848 Points)
Replied 25 June 2010

MR. TARUN,

PLEASE GO TO THE FOLLOWING PATH AND ACQUIRE INFROMATION IN THIS REGARD.

https://www.rbi.org.in/scriptts/FAQView.aspx?Id=65

RAMESH VERMA

1 Like

rama krishna (finance manager) (36 Points)
Replied 25 June 2010

RTGS facility is also available for Savings bank account. not restricted to Current accounts.

1 Like

vikas jamwal (Sr Executive Accounts ) (37 Points)
Replied 25 June 2010

Dear RTGS facility is for all account. u can also make the NEFT/RTGS form Saving account

1 Like

Rishab (A.C.A.) (155 Points)
Replied 25 June 2010

I have made several payments by RTGS through my savings a/c, so i don't think it is restricted to any specific Bank a/c

It is a facility for the Bank customer alone.

RTGS is for payments above Rs. 1 Lacs.

Some Banks charge for this service.

My Bank told me the cut-off time for the said payments is 3:00 noon (But it could be contrary as some freinds suggested above)

1 Like

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 25 June 2010

thanks to all respected friends and sir for replying to my post. but dear rishab is write that we can use this facility for payment above rs. 100000. it is right or not.

thanks & regards

tarun rustagi

vikas jamwal (Sr Executive Accounts ) (37 Points)
Replied 25 June 2010

Dear Tarun

if u r paying more than Rs 100,000.00 its called RTGS,below that it is called NEFT

Thanks

VSJ

1 Like

(Guest)

Originally posted by : Prasad
	HI Taran, RTGS is a facility offered for C/A holders only...... There is a specific format of bak in which we need to fill up the detaisl ......main parts contains NEFT ocde of both banks and amount and to from banks. Upon the submission of form, bank issues UTR code and usually this gets happen in 2-3 hurs ...though bank promises 1/2 hour.......not that there is cut off time period for RTGS and it is decided by RBI .....but this time keeps on extending every day...accordingly u have to inquire at bank....... Thats it.........its done

AGREE WITH PRASAD

(Guest)

· Q1. 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.

· Q2. How RTGS is different from Electronic Fund Transfer System (EFT) or National Electronics Funds Transfer System (NEFT)?
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 (9.00 am, 11.00 am, 12.00 noon. 13.00 hours, 15.00 hours and 17.00 hours) and 3 times during Saturdays (9.00 am, 11.00 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.

· Q3. Is there any minimum / maximum amount stipulation for RTGS transactions?
The 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 EFT and NEFT transactions.

· Q4. 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.

· Q5. Would the remitting customer receive an acknowledgement of money credited to the beneficiary's account?
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 that money has been delivered to the receiving bank.

· Q6. 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.

· Q7. Till what time RTGS service window is available?
The RTGS service window for customer's transactions is available from 9.00 hours to 16.30 hours on week days and from 9.00 hours to 12.30 noon 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?
With a view to rationalize the service charges levied by banks for offering various electronic products, a broad framework has been mandated as under:

a) Inward transactions – Free, no charge to be levied

· b) Outward transactions –

· Rs. 1 lakh to Rs. 5 lakh - not exceeding Rs. 25 per transaction.

· Rs. 5 lakh and above – not exceeding Rs. 50 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?
The remitting customer has to furnish the following information to a bank for effecting a RTGS remittance:
1. Amount to be remitted.
2. His account number which is to be debited.
3. Name of the beneficiary bank.
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?
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.

· Q11. Do all bank branches in India provide RTGS service?
No, all the bank branches in India are not RTGS enabled. As on December 31, 2008 more than 52,000 bank branches are RTGS enabled. The list of such branches is available on RBI website.

· Q12. 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.

· Q13. Whom do I can contact, in case of non-credit or delay in credit to the beneficiary account?
Contact your bank / branch. If the issue is not resolved satisfactorily, the Customer Service Department of RBI may be contacted at -

· The Chief General Manager,
Reserve Bank of India,
Customer Service Department,
1st Floor, Amar Building, Fort,
Mumbai - 400001

· Q14. How much volume and value of transactions are routed through RTGS on a typical day?
On a typical day, RTGS handles about 60,000 transactions a day for an approximate value of Rs.2,700 billion.

· Q15. 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 would have to be RTGS enabled. The lists are readily available at all RTGS enabled branches. Besides, the information is available at RBI website. Considering that more than 52,000 branches at more than 10,000 cities/ towns and taluka places are covered under the RTGS system, getting this information would not be difficult.