REAL TIME GROSS SETTLEMENT

byAYUSH VERMA

SLIDESHARE.NET

CONTENTSE-Transfer Systems in INDIARTGSWhy RTGS ?Making RTGS PaymentsInformation Needed for Effective RemittanceWorking of RTGSProcedure

TimingsTransaction Amount LimitsProcessing Charges Reference

E-Transfer Systems in INDIA

NEFTNational Electronic Funds Transfer

RTGSReal Time Gross Settlement

IMPSImmediate Payment Service

RTGS It is a continuous (real-time) settlement of funds

transfers individually on an order by order basis 

Real Time - processing of instructions at the time they are receivedpayment transaction is not subjected to any waiting period

Gross Settlement - settlement of instructions occurs individuallytransaction is settled on one to one basis without bunching or

netting with any other transaction

payments are final and irrevocable

Why RTGS ?

Reduces the cost of exchanging goods and services

A RTGS electronic fund transfer facilitates fund transfer on real time basis.

In case of a holiday, the amount gets credited on the next working day.

RTGS could also be done offline by submission of the remittance form at the bank branch of the remitter.

RTGS avoids the cost involved in other instruments of fund transfer such as demand draft.

MakingRTGSPayments

Information needed for Effective Remittance

Amount to be remittedRemitting customer’s account number which

is to be debited.Name of the beneficiary bank.Name of the beneficiary.Account number of the beneficiary.IFSC code of the destination bank branch

WORKING OF RTGS

PROCEDURE Activation Internet banking should be activated for conducting transactions through

RTGS.

Beneficiary The person to whom the payment is to be made needs to be added as a

'beneficiary' and his bank account details provided in order to transfer the funds. These include the name of the beneficiary account holder, account number, bank and branch name, and the IFSC code of the beneficiary bank branch.

Processing The bank requires 12-24 hours for authenticating the details of the

beneficiary.

Transfer Select the type of transfer option (NEFT or RTGS), beneficiary name,

amount, and the reason/description of transfer. On submission of the details and the security password, the transfer instruction is processed. The RTGS transfer is carried out on a real-time basis.

Timings

No Service on Bank Holidays

Transaction Amount LimitMinimum : INR 200,000 (for INDIA)

Maximum : No Limit

maximum amount may vary with respect to banks

For example, RTGS maximum Amount Limit in SBI Rs.5 million for small & medium firms Rs.5 billion for large & very large firms

Processing ChargesTimings Amount (Rs.) Charges (Rs.)

9 a.m. – 12 noon200,000 – 500,000 25

Above 500,000 50

After 12 noon – 3:30 p.m.

200,000 – 500,000 26

Above 500,000 51

After 3:30 p.m.200,000 – 500,000 30

Above 500,000 55

ReferenceReserve Bank of IndiaState Bank of IndiaIndustrial Credit and Investment Corporation

of Indiahttp://en.wikipedia.org/Casansaar.comJagoInvestor.com

THANK YOU!;-)