Internet Banking

Rtgs Transactions

  1. What is RTGS (Real Time Gross Settlement) System?
    RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a “real time” and on gross” basis. This is the fastest possible money transfer system through the banking channel. Settlement in “real time” means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. “Gross settlement” means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable.

  2. How RTGS is different from National Electronic Funds Transfer (NEFT)?
    NEFT is also an electronic funds transfer system that operates on deferred net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time. Contrary to this, in RTGS, transactions are processed continuously throughout the RTGS business hours.

  3. Is there any minimum/maximum amount stipulation for RTGS transactions?
    RTGS system is primarily for large value transactions. The minimum amount to be remitted through RTGS is Rs.2 lakh. There is no upper ceiling for RTGS transactions. No minimum or maximum stipulation has been fixed for NEFT transactions.

  4. 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 funds transfer in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary’s account within two hours of receiving the funds transfer message.

  5. Would the remitting customer receive an acknowledgement of money credited to the beneficiary’s account?
    The remitting bank receives a message from Reserve Bank that money has been credited to the receiving bank. Based on this the remitting bank can advise the remitting customer that money has been delivered to the receiving bank.

  6. Would the remitting customer get back the money if it is not credited to the beneficiary’s account? When?
    Yes. It is expected that the receiving bank will credit the account of the beneficiary instantly. If the money cannot be credited for any reason, the receiving bank would have to return the money to the remitting bank within 2 hours. Once the money is received back by the remitting bank, the original debit entry in the customer’s account is reversed.

  7. What about processing charges/service charges for RTGS transactions?
    Charges will be applicable as per service charges guidelines of the Bank. All incoming (inward) RTGS will not attract any charges.

  8. What is the essential information that the remitting customer would have to furnish to a bank for the remittance to be effecteds
    The remitting customer has to furnish the following information to a bank for effecting a RTGS remittance.

    • Amount to be remitted

    • Account to be debited

    • Name of the beneficiary Bank

    • Name of the beneficiary customer

    • Account number of the beneficiary customer

    • Sender to receiver information if any

    • The IFSC code of the receiving branch


  9. How would one know the IFSC code of the receiving branch?
    The beneficiary customer can obtain the IFSC code from his branch. The IFSC code is available in the cheque leaf. This code number and bank branch can be communicated by the beneficiary to the remitting customer. Also the remitting customer can obtain IFSC of the receiving branch from his branch.

  10. Do all bank branches in India provide RTGS Service?
    No, all the bank branches in India are not RTGS enabled. The list is available on RBI website www.rbi.org.in/scripts/bs_viewRTGS.aspx All branches of Nainital Bank are enabled for RTGS.

  11. Is there any way that a remitting customer can track the remittance transaction?
    It would depend on the arrangement between the remitting customer and the remitting bank. Some banks with internet banking facility provide this service. Once the funds are credited to the account of the beneficiary bank, the remitting customer gets a confirmation from his bank either by an e-mail or by a short message on the mobile.

  12. Whom do I contact, in case of non-credit or delay in credit to the beneficiary account?
    Contact your base branch. If the issue is not resolved satisfactorily, please contact Net-Banking Cell, Nainital Bank Ltd., Railway Bazar, Haldwani (UK) email address: [email protected]..

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