For knowing about the Facility following FAQs would
Q1. What is RTGS System?
'RTGS' stands for Real Time Gross Settlement, which can be defined as the
continuous (real-time) settlement of funds transfers individually on an order
by order basis (without netting). 'Real Time' means the processing of
instructions at the time they are received rather than at some later time;
'Gross Settlement' means the settlement of funds transfer instructions occurs
individually (on an instruction by instruction basis). Considering that the
funds settlement takes place in the books of the Reserve Bank of India, the
payments are final and irrevocable.
Q2. How RTGS is different from
National Electronics Funds Transfer System (NEFT)?
NEFT is an electronic fund transfer system that operates on a Deferred Net
Settlement (DNS) basis which settles transactions in batches. In DNS, the
settlement takes place with all transactions received till the particular
cut-off time. These transactions are netted (payable and receivables) in NEFT
whereas in RTGS the transactions are settled individually. For example,
currently, NEFT operates in hourly batches. [There are twelve settlements from
8 am to 7 pm on week days and six settlements from 8 am to 1 pm on Saturdays.]
Any transaction initiated after a designated settlement time would have to wait
till the next designated settlement time Contrary to this, in the RTGS
transactions are processed continuously throughout the RTGS business hours.
Q3. Is there any minimum /
maximum amount stipulation for RTGS transactions?
The RTGS system is primarily meant for large value transactions. The minimum
amount to be remitted through RTGS is ` 2 lakh. There
is no upper ceiling for RTGS transactions.
Q4. What is the time taken for
effecting funds transfer from one account to another under RTGS?
Under normal circumstances the beneficiary branches are expected to receive the
funds in real time as soon as funds are transferred by the remitting bank. The
beneficiary bank has to credit the beneficiary's account within 30 minutes of
receiving the funds transfer message.
Q5. Would the remitting
customer receive an acknowledgement of money credited to the beneficiary's
The remitting bank receives a message from the Reserve Bank that money has been
credited to the receiving bank. Based on this the remitting bank can advise the
remitting customer through SMS that money has been credited to the receiving
Q6. Would the remitting
customer get back the money if it is not credited to the beneficiary's account?
Yes. Funds, received by a RTGS member for the credit to a beneficiary
customer’s account, will be returned to the originating RTGS member within one
hour of the receipt of the payment at the PI of the recipient bank or before
the end of the RTGS Business day, whichever is earlier, if it is not possible
to credit the funds to the beneficiary customer’s account for any reason e.g.
account does not exist, account frozen, etc. Once the money is received back by
the remitting bank, the original debit entry in the customer's account is
Q7. Till what time RTGS service
is available ?
The RTGS service window for customer's transactions is available to banks from
10.00 hours to 16.00 hours on week days and from 9.00 hours to 14:00 hours on
Saturdays for settlement at the RBI end. However, the timings that the banks
follow may vary depending on the customer timings of the bank branches.
Q8. What about Processing
Charges / Service Charges for RTGS transactions?
With a view to rationalize the service charges levied by banks for offering
funds transfer through RTGS system, a broad framework has been mandated as
a) Inward transactions – Free, no charge to be
b) Outward transactions – Rs 2 lakh to Rs 5 lakh - not exceeding Rs 30.00
Above Rs 5 lakh – not exceeding Rs
55.00 per transaction.
Q9. What is the essential
information that the remitting customer would have to furnish to a bank for the
remittance to be effected?
Ans. The remitting customer has
to furnish the following information to a bank for initiating a RTGS
- Amount to be remitted
- Remitting customer’s account
number which is to be debited
- Name of the beneficiary bank
- The IFSC Number of the
- Name of the beneficiary
- Account number of the
- Sender to receiver information,
Q10. How would one know the
IFSC number of the receiving branch?
. The beneficiary customer can obtain the IFSC code from his bank branch. The
IFSC code is also available on the cheque leaf. The list of IFSCs is also
available on the RBI website .This code number and bank branch details can be
communicated by the beneficiary to the remitting customer.
Q11. Do all bank branches in
India provide RTGS service?
. No. All the bank branches in India are not RTGS enabled. Presently, there are
more than 100,000 RTGS enabled bank branches. The list of such branches is
available on RBI website.
Q12. Is there any way that a
remitting customer can track the remittance transaction?
Ans. Branch Head of the
bank, may be contacted for tracking a transaction.
Q13. Whom do I can contact, in
case of non-credit or delay in credit to the beneficiary account?
Ans. Contact your bank
Q14. How can a remitting
customer know whether the bank branch of the beneficiary accepts remittance
. For a funds transfer to go through RTGS, both the sending bank branch and the
receiving bank branch would have to be RTGS enabled. The lists are readily
available at all RTGS enabled branches. Besides, the information is available
at RBI website .
For making use of the
facility you need to fill up the form ( available in the branches and can
also be downloaded from the Kangra Bank website) and give a cheque
favouring The Kangra Co-operative Bank Ltd. For a sum need to be remitted the