NEFT – Nation wide
- Replaced RBI_EFT from 1.4.08
- 82 banks (as 0n 31.12.07)
-34510 branches “
- Centralised a/c maintenance
at NCC of RBI (Mumbai)
• The ability of a branch to participate in the
system would depend on it possessing the
required technical infrastructure for using and
participating in the system
Remitter – NEFT Application – Beneficiary’s name, account
type &No. Bank -branch, IFS code of the beneficiary’s
WHAT IS AN IFS CODE?
Indian Financial System Code to identify the bank and
- 11 digit alphanumeric
- First 4 … relate to Bank
- Fifth …. Control Character ( presently 0)
- Next 6 … branch code
STEP – 2
Remitting branch prepares an SFMS
( Structured Financial Message Solution)
transmits it to its Service center for NEFT
• STEPS 3 & 4
• Service Centre for NEFT sends to NEFT
clearing Centre RBI, at Mumbai
• At NEFT clearing Centre RBI, the SFMS is
included in the next available settlement.
• 6 SETTLEMENTS FOR A DAY.
• On Saturdays 3
• 09.30, 10.30, 12.00, 13.00, 15.00 and
16.00 hrs on weekdays and 09.30, 10.30
and 12.00 hours on Saturdays
STEPS 5 & 6
At the clearing centre RBI
Sorting of the transactions bank wise
accounting for net credit or debit –
in participating bank’s accounts.
transmission of bank wise remittance
messages to the individual banks
The receiving banks process the RBI
transmittals and provide credits to the
Service Center may use STPI (Straight
Through Processing Interface) and
upload the SFMS messages to individual
The beneficiary’s bank account is
credited on the same day or the next day
depending on the time of transmittal and
the RBI settlement time after that
The beneficiary bank advises the
In case of non-credit, the amount is to
be sent back to the sender bank in the
next settlement itself.
Non credit to the beneficiary’s account
has to be followed up by the remitter
with his branch.
He is entitled to get the amount back if
the credit does not happen according to
Both the remitter and the beneficiary must
have bank accounts to use this facility.
Remittances in foreign exchange are not
A beneficiary cannot also receive funds from
abroad through NEFT
RTGS is Real Time Gross Settlement. It is a
funds transfer mechanism which works “real
time” and on a “gross settlement” basis
where money transfer takes place between
RTGS is the fastest mode of funds transfer
as on date.( Inter-bank transactions)
Real time settlement means that the
payment to the beneficiary is not subject
to any waiting period.
The transactions are settled as soon as
they are processed.
In other words instantaneous credit is
afforded to the beneficiary,
Gross settlement means
On one to one basis
Bank’s a/c credited in RBI instantaneously
Beneficiary’s a/c is credited within 2 hours
RBI message to remitter bank
Message from remitter bank to remitter.
In case of non-credit to beneficiary's a/c
within 2 hours, the destination bank has
to return the money to the remitting
bank within 2 hours.
At the remitting bank, the debit in the
customer’s a/c is reversed.
Working hours of RTGS service window
For Customer service:
9 A.M. To 15 hours (on week days)
9 A.M to 12 noon ( Saturday)
For Inter-bank transactions
9 A.M. to 17.00 hours
9 A.M. to 14 hours.
Transaction Amount – Min 1.00 lakh
- Max NO LIMIT.
26000 BRANCHES (as on 31.01.2008)
14000 TRANSACTIONS/DAY ( “ )
1,50,000 Crores ( “)
Procedure is similar to that of NEFT.
Valuable for high value time critical
Payment instructions carry a guarantee of