NEFT & RTGS

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NEFT & RTGS

  1. 1. FUNDS TRANSFER – NEFT & RTGS
  2. 2.  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)
  3. 3. • 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
  4. 4.  STEP 1  Remitter – NEFT Application – Beneficiary’s name, account type &No. Bank -branch, IFS code of the beneficiary’s branch,  WHAT IS AN IFS CODE?  Indian Financial System Code to identify the bank and branch - 11 digit alphanumeric - First 4 … relate to Bank - Fifth …. Control Character ( presently 0) - Next 6 … branch code
  5. 5.  STEP – 2  Remitting branch prepares an SFMS ( Structured Financial Message Solution) transmits it to its Service center for NEFT 
  6. 6. • 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
  7. 7.  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
  8. 8.  STEP 7  The receiving banks process the RBI transmittals and provide credits to the beneficiary’s accounts.  Service Center may use STPI (Straight Through Processing Interface) and upload the SFMS messages to individual branches.
  9. 9.  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 transmittal
  10. 10.  GENERAL CONDITIONS:  The beneficiary bank advises the beneficiary.  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 schedule
  11. 11.  Both the remitter and the beneficiary must have bank accounts to use this facility.  Remittances in foreign exchange are not permitted.  A beneficiary cannot also receive funds from abroad through NEFT
  12. 12.  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 two banks  RTGS is the fastest mode of funds transfer as on date.( Inter-bank transactions)
  13. 13.  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,
  14. 14.  Gross settlement means  On one to one basis  No netting  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.
  15. 15.  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.
  16. 16. 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.
  17. 17. 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 payments  Payment instructions carry a guarantee of RBI.

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