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 nettin). 'Real Time' means the !rocessin 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). #onsiderin
that the funds settlement ta$es !lace in the boo$s of the Reserve %an$ of &ndia, the
!ayments are final and irrevocable.
Q2. How RTGS is different from National Electronics Fnds Transfer System !NEFT"?
Ans. '()T is an electronic fund transfer system that o!erates on a *eferred 'et Settlement
(*'S) basis which settles transactions in batches. &n *'S, the settlement ta$es !lace with
all transactions received till the !articular cut-off time. These transactions are netted
(!ayable and receivables) in '()T whereas in RTGS the transactions are settled
individually. )or e+am!le, currently, '()T o!erates in hourly batches. ,There are twelve
settlements from - am to . !m on wee$ days and si+ settlements from - am to / !m on
Saturdays.0 Any transaction initiated after a desinated settlement time would have to wait till
the ne+t desinated settlement time #ontrary to this, in the RTGS transactions are
!rocessed continuously throuhout the RTGS business hours.
Q#. $s there any minimm % ma&imm amont sti'lation for RTGS transactions?
Ans. The RTGS system is !rimarily meant for lare value transactions. The minimum
amount to be remitted throuh RTGS is ` 1 la$h. There is no u!!er ceilin for RTGS
transactions.
Q(. What is the time ta)en for effectin* fnds transfer from one accont to another
nder RTGS?
Ans. 2nder normal circumstances the beneficiary branches are e+!ected to receive the
funds in real time as soon as funds are transferred by the remittin ban$. The beneficiary
ban$ has to credit the beneficiary's account within 34 minutes of receivin the funds transfer
messae.
Q+. Wold the remittin* cstomer recei,e an ac)nowled*ement of money credited to
the -eneficiary.s accont?
Ans. The remittin ban$ receives a messae from the Reserve %an$ that money has been
credited to the receivin ban$. %ased on this the remittin ban$ can advise the remittin
customer throuh S5S that money has been credited to the receivin ban$.
Q/. Wold the remittin* cstomer *et -ac) the money if it is not credited to the
-eneficiary.s accont? When?
Ans. 6es. )unds, received by a RTGS member for the credit to a beneficiary customer7s
account, will be returned to the oriinatin RTGS member within one hour of the recei!t of
the !ayment at the 8& of the reci!ient ban$ or before the end of the RTGS %usiness day,
whichever is earlier, if it is not !ossible to credit the funds to the beneficiary customer7s
account for any reason e.. account does not e+ist, account fro9en, etc. :nce the money is
received bac$ by the remittin ban$, the oriinal debit entry in the customer's account is
reversed.
Q0. Till what time RTGS ser,ice window is a,aila-le?
Ans. The RTGS service window for customer's transactions is available to ban$s from ;.44
hours to /<.34 hours on wee$ days and from ;.44 hours to /=>44 hours on Saturdays for
settlement at the R%& end. ?owever, the timins that the ban$s follow may vary de!endin
on the customer timins of the ban$ branches.
Q1. What a-ot 2rocessin* 3har*es % Ser,ice 3har*es for RTGS transactions?
Ans @ith a view to rationali9e the service chares levied by ban$s for offerin funds transfer
throuh RTGS system, a broad framewor$ has been mandated as under>
a) &nward transactions A )ree, no chare to be levied.
b) :utward transactions A ` 1 la$h to ` B la$h - not e+ceedin ` 34.44 !er transaction"
Above ` B la$h A not e+ceedin ` BB.44 !er transaction.
Q4. What is the essential information that the remittin* cstomer wold ha,e to
frnish to a -an) for the remittance to -e effected?
Ans. The remittin customer has to furnish the followin information to a ban$ for initiatin a
RTGS remittance>
/. Amount to be remitted
1. Remittin customer7s account number which is to be debited
3. 'ame of the beneficiary ban$ and branch
=. The &)S# 'umber of the receivin branch
B. 'ame of the beneficiary customer
<. Account number of the beneficiary customer
.. Sender to receiver information, if any
Q15. How wold one )now the $FS3 nm-er of the recei,in* -ranch?
Ans. The beneficiary customer can obtain the &)S# code from his ban$ branch. The &)S#
code is also available on the cheCue leaf. The list of &)S#s is also available on the R%&
website (htt!>DDrbidocs.rbi.or.inDrdocsDRTGSD*:#sDRTG(%4//1.+ls). This code number and
ban$ branch details can be communicated by the beneficiary to the remittin customer.
Q11. 6o all -an) -ranches in $ndia 'ro,ide RTGS ser,ice?
Ans. 'o. All the ban$ branches in &ndia are not RTGS enabled. 8resently, there are more
than /44,444 RTGS enabled ban$ branches. The list of such branches is available on R%&
website at> htt!>DDrbidocs.rbi.or.inDrdocsDRTGSD*:#sDRTG(%4//1.+ls .
Q12. $s there any way that a remittin* cstomer can trac) the remittance transaction?
Ans &t would de!end on the arranement between the remittin customer and the remittin
ban$. Some ban$s with internet ban$in facility !rovide this service. :nce the funds are
credited to the account of the beneficiary ban$, the remittin customer ets a confirmation
from his ban$ either by an e-mail or S5S. #ustomer may also contact RTGS D '()T
#ustomer )acilitation #entres of the ban$s, for trac$in a transaction.
Q1#. Whom do $ can contact7 in case of non8credit or delay in credit to the -eneficiary
accont?
Ans. #ontact your ban$ D branch. &f the issue is not resolved satisfactorily, com!laint may be
loded to the #ustomer Service *e!artment of R%& at -
The #hief General 5anaer
Reserve %an$ of &ndia
#ustomer Service *e!artment
/st )loor, Amar %uildin, )ort
5umbai A =44 44/
:r send email
Q1(. How can a remittin* cstomer )now whether the -an) -ranch of the -eneficiary
acce'ts remittance thro*h RTGS?
Ans. )or a funds transfer to o throuh RTGS, both the sendin ban$ branch and the
receivin ban$ branch would have to be RTGS enabled. The lists are readily available at all
RTGS enabled branches. %esides, the information is available at R%& website
(htt!>DDrbidocs.rbi.or.inDrdocsDRTGSD*:#sDRTG(%4//1.+ls). #onsiderin that more than
//4,444 branches at more than 34,444 cities D towns D talu$a !laces are covered under the
RTGS system, ettin this information would not be difficult.