RTGS (Real Time Gross Settlement System)
Real Time Gross Settlement (RTGS) is a comprehensive
secured on line settlement solution, set up, operated and maintained by Reserve Bank of
India to enable funds settlement across banks in the country on real time basis to
minimise costs and maximize benefits, increase velocity of funds-flow both inter- city and
inter bank, reduce credit risk, increase transparency of payments and better liquidity
management.
The main ESSENCE of RTGS system is its deviation from the
erstwhile Net Settlement System where transmission, processing is done for a set of
transactions (say cheque clearing, EFT or sale/ purchase of securities, call lending/
borrowing etc.) at a particular point of time and the settlement takes place on a
pre-fixed interval of time or at the end of the day. In RTGS system, inter-bank payment
instructions are processed and settled transaction by transaction and continuously
(online) through out the day.
RTGS is managed by RBI being the Central Bank because all
the Banks maintain current Account with RBI.
Date of Implementation: In India RTGS System has been
implemented w.e.f. March 26, 2004 placing India at par with the best practices in the
world in terms of payment system.
Main Benefit: RTGS provides liquidity to
the beneficiary in no time on the date of transaction itself.
RTGS provides two types of fund transfer viz.
Customer Fund Transfer (IFN 298R41): Fund remitted through RTGS system
for credit to A/c. of the beneficiary maintained with any branch of other Bank. Bank
itself for meeting any obligation (e.g. for payment of matured proceeds of TD, outstanding
Bills etc.) can initiate such transfer in compliance of suitable request or at the request
of an existing customer fund transfer can be effected by using the message format IFN
298R41.
Inter Bank Fund Transfer (IFN 298 R42): For Bank to Bank payment (e.g.
Call Lending/ Borrowing, investment in ill or payment of matured TD, proceeds of returned
clearing cheque etc.) this format IFN 298R42 is to be used for transfer of fund.
United Bank of India in Perspective of RTGS:
Commencement date of RTGS journey: 11.08.2004
No. of RTGS Enabled Branches: 95 Branches as on 30th Nov' 2006 across
the country.
Average per day transactions: 120 Messages (approx.) involving Fund of
Rs. 500 Crores (approx.).
Time schedule (upto) for RTGS credit push:
| |
Customer Payment |
Inter Bank Payment |
| a |
On weekdays |
3:00 PM |
5:00 PM |
| b |
On Saturday |
12:00 O'Clock |
2:00 PM |
Customer Fund Transfer:
OUTGOING : The customer would submit an application in the common
application form for DD/ MT/ TT/ EFT/ SEFT/ SFMS/ RTGS to the originating branch for
transfer of funds to any other RTGS enabled branch of other bank. The originating branch
after debiting the customer's a/c or realisation of the consideration money would send a
message to the destination branch.
INCOMING : On receipt of a valid and authenticated message, the
destination branch applies the funds to the beneficiary's a/c after ensuring matching of
Name and Account No.
Note: Customers will have to lodge their request at
least 30 minutes earlier of the schedule time so as to provide some time in transition (as
per system) after creation of the message to reach finality status).
Service Charges: (Subject to review very shortly)
| |
RTGS |
| Local Inward Remittance |
Nil |
| Local Outward Remittance |
Rs. 50/- per transaction |
| Outstation Inward Remittance |
Nil |
| Outstation Outward Remittance |
Re. 2/- per Rs.1000/-
Min Rs. 200/-
Max Rs. 500 0/- |
|
