neft & rtgs

RECEIPTS & PAYMENTS

FUNDS TRANSFER – NEFT & RTGS

FUNDS TRANSFER – NEFT

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)

FUNDS TRANSFER – NEFT

• 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

NEFT – STEPS

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

NEFT – STEPS

STEP – 2 Remitting branch prepares an SFMS ( Structured Financial Message Solution) transmits it to its Service center for NEFT

NEFT – STEPS

• 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

NEFT – STEPS

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

NEFT – STEPS

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.

NEFT – STEPS

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

NEFT

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

NEFT- GENERAL TERMS

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

FUNDS TRANSFER - RTGS

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)


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 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.


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 windowFor 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

payments Payment instructions carry a guarantee

of RBI.

neft & rtgs

Education