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).

1. by
PRATHEEBAN R
MBA – Banking Technology
School of Management
Pondicherry University

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. E-Transfer Systems in INDIA
 NEFT
 National Electronic Funds Transfer
 RTGS
 Real Time Gross Settlement
 IMPS
 Immediate Payment Service

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. 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. 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. Making
RTGS
Payments

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. Timings
 No Service on Bank scheduled Holidays

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. 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. RTGS :
Visual
OverView
using FINACLE, a
banking software
developed by
INFOSYS

13. Transaction Flow : RTGS
// No special characters like *, /, @ to be used in
any of the fields

14. Transaction Flow : RTGS (contd…) OUTGOING MESSAGE (Cheque)
Dimmed fields Cheque No
Chq Date

15. Transaction Flow : RTGS (contd...) OUTGOING MESSAGE (Cash)
Remittance Amount excl Comm.
Commission Amt.

16. STATUS ENQUIRY OF RTGS MESSAGES for Inward and Outward

17. STATUS ENQUIRY OF RTGS MESSAGE for Inward and Outward.(contd…)

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. 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. 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. Any Questions ?

22. THANK
YOU!