Real Time Gross Settlement

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Real time gross settlement systems (RTGS) are specialist funds transfer systems where transfer of money or securities takes place from one bank to another on a "real time" and on "gross" basis. It can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting).

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Real Time Gross Settlement

  1. 1. by PRATHEEBAN R MBA – Banking Technology School of Management Pondicherry University
  2. 2. AGENDA  E-Transfer Systems in INDIA  RTGS  Why RTGS ?  What If, NO RTGS ?  Making RTGS Payments  Timings  Transaction Amount  Processing Charges  RTGS : Visual Overview  RTGS Customer Support  Similar RTGS in Other Countries  Reference
  3. 3. E-Transfer Systems in INDIA  NEFT  National Electronic Funds Transfer  RTGS  Real Time Gross Settlement  IMPS  Immediate Payment Service
  4. 4. RTGS  continuous (real-time) settlement of funds transfers individually on an order by order basis  Real Time - processing of instructions at the time they are received  payment transaction is not subjected to any waiting period  Gross Settlement - settlement of instructions occurs individually  transaction is settled on one to one basis without bunching or netting with any other transaction  payments are final and irrevocable
  5. 5. Why RTGS ?  lower cost of transaction as compared to cost of transaction and remittance through draft  reduces the cost of exchanging goods and services  indispensable to the functioning of the interbank, money, and capital markets  technical efficiency of the payment system is important for development of an economy.
  6. 6. What If, No RTGS ?  severely drag on the stability & developmental capacity of a national economy  inefficient use of financial resources  inequitable risk-sharing among agents  actual losses for participants  loss of confidence in the financial system
  7. 7. Making RTGS Payments
  8. 8. Information needed for Effective Remittance  Amount to be remitted  Remitting 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
  9. 9. Timings  No Service on Bank scheduled Holidays
  10. 10. Transaction Amount  Minimum : 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 enterprise  Rs.5 billion for large & very large corporate
  11. 11. Processing Charges Timings Amount (Rs.) Charges (Rs.) 9 a.m. – 12 noon 200,000 – 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
  12. 12. RTGS : Visual OverView using FINACLE, a banking software developed by INFOSYS
  13. 13. Transaction Flow : RTGS // No special characters like *, /, @ to be used in any of the fields
  14. 14. Transaction Flow : RTGS (contd…) OUTGOING MESSAGE (Cheque) Dimmed fields Cheque No Chq Date
  15. 15. Transaction Flow : RTGS (contd...) OUTGOING MESSAGE (Cash) Remittance Amount excl Comm. Commission Amt.
  16. 16. STATUS ENQUIRY OF RTGS MESSAGES for Inward and Outward
  17. 17. STATUS ENQUIRY OF RTGS MESSAGE for Inward and Outward.(contd…)
  18. 18. RTGS Customer Support  contact Branch/Bank (OR)  contact Customer Service Department of RBI  The Chief General Manager Reserve Bank of India Customer Service Department 1st Floor, Amar Building, Fort Mumbai – 400 001 (OR)  Mail to : cgmcsd@rbi.org.in
  19. 19. Similar RTGS in Other Countries  Britain  Clearing House Automated Payment System (CHAPS)  Canada  Large Value Transfer System (LVTS)  Australia  Reserve Bank Information and Transfer System (RITS)  United States  Federal Reserve Wire Network (Fedwire)  European Union  Trans-European Automated Real-time Gross Settlement Express Transfer System 2 (TARGET2)  Singapore  MAS Electronic Payment System Plus (MEPS+)  Switzerland  Swiss Interbank Clearing (SIC)  Saudi Arabia  Saudi Arabian Riyal Interbank Express (SARIE)
  20. 20. Reference  Reserve Bank of India  State Bank of India  Industrial Credit and Investment Corporation of India  http://en.wikipedia.org/wiki/Indian_settlement_syste ms  http://en.wikipedia.org/wiki/Real_Time_Gross_Settle ment  Casansaar.com  JagoInvestor.com
  21. 21. Any Questions ?
  22. 22. THANK YOU!

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