RTGS
The acronym
'RTGS' stands for Real Time Gross Settlement, which can be defined as the
continuous (real-time) settlement of funds 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. The RTGS system is primarily meant for large value transactions.
The minimum amount to be remitted through RTGS is Rs 2 lakh. The maximum limit
is Rs 10 lakh per day. RTGS Charges - Outward transactions Amount above Rs 2 lakh upto Rs 5 lakh -
Rs 25 + Service Tax Amount above Rs 5 lakh upto Rs 10 lakh - Rs 50 + Service Tax 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. If the funds are not credited to the
beneficiary's account for any reason like account does not exist, account
frozen etc., the funds will be returned to the originating bank within one hour
or before the end of the RTGS Business day, whichever is earlier. 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. 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.
Months
|
RTGS
|
||
No
of Transactions
|
amount
in million
|
||
Nov-16
|
123046178
|
8807884.81
|
|
Oct-16
|
133213109
|
9504502.1
|
|
Sep-16
|
120147454
|
9880165.11
|
|
Aug-16
|
118556378
|
8764139.66
|
|
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