RTGS is a payment system in which both processing and final settlement of fund transfer instructions take place on real time basis. It is a gross settlement system where fund-transfers are settled individually, i.e. without netting debits against credits. RTGS effects final settlement continuously and the settlements are immediate, final and irrevocable. Each Bank branch participating in the RTGS is identified by a unique Indian Financial System Code (IFSC)
With the advancement of the Technological changes in the Banking industry the RTGS introduction has become a boom in settling the Interbank funds instantaneously. The Customer can avail this facility and make instantaneous transfer of funds to beneficiary account, Karnataka Bank is a member of Real Time Gross Settlement (RTGS) System from 16th July 2004 and has been settling Inter-Bank transactions in Mumbai since then. MoneyQuick services can be accessed by customers which uses RTGS service. This MoneyQuick facility provides INTERBANK funds transfer.
The minimum amount for Interbank funds transfer facility for customers under MoneyQuick is fixed at ₹2,00,000 (Rupees Two Lakh only).
Service Charges for outward customer transactions - ₹2 lakh to ₹5 lakh is ₹25/- and for Above ₹5 lakh is ₹50/- per transaction plus service tax.
Service Charges for Inward customer transactions - FREE.
What is RTGS System?
The acronym '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.
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. For example, currently, NEFT operates in hourly batches - there are eleven settlements from 8 am to 7 pm on week days(Monday to Saturday). 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.
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 Rs. 2 lakh. There is no upper ceiling for RTGS transactions.
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.
Would the remitting customer receive an acknowledgement of money credited to the beneficiary's account?
The remitting bank receives an acknowledgement from the Reserve Bank that money has been credited to the receiving bank. Based on this the SMS/ email will be sent to cell numbers/email ID of sender as updated in our system.
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 immediately. Once the money is received back by the remitting bank, the original debit entry in the customer's account is reversed.
Till what time RTGS service window is available?
The RTGS service window for customer's transactions is available from 8.00 am to 6.00 pm on week days (Monday to Working Saturdays)for settlement at the RBI end. However, the timings that the banks follow may vary depending on the customer timings of the branches.
What about Processing Charges / Service Charges for RTGS transactions?
With a view to rationalize the service charges levied by banks for offering various electronic products, a broad framework has been mandated as under:
a) Inward transactions : Free, no charge to be levied
b) Outward transactions :
Rs.2 lakh to Rs.5 lakh - Rs.25 + GST per transaction.
Above Rs.5 lakh - Rs.50 + GST per transaction.
What is the essential information that the remitting customer would have to furnish to a bank for the remittance to be effected?
The remitting customer has to furnish the following information to a bank for effecting a RTGS remittance:
Amount to be remitted
Remitting customer's account number which is to be debited
Name of the beneficiary bank
Name of the beneficiary customer
CBS account number of the beneficiary customer *
The IFSC Number of the receiving branch
Sender to receiver information, if any
* When the beneficiary is Karnataka Bank customer, valid 16 digit account number without any prefix or suffix should be furnished (15 digit account number used for ECS transactions is invalid for RTGS transactions). This enables to serve you in Real Time.
How would one know the IFSC code 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 IFSC code is also available on the RBI website (https://rbi.org.in/scripts/BS_ViewRTGS.aspx
). This code number and bank branch details can be communicated by the beneficiary to the remitting customer.
Do all bank branches in India provide RTGS service?
No, all the bank branches in India are not RTGS enabled. As on 02 February, 2017 there are more than 131,279 RTGS enabled bank branches. The list of such branches is available on RBI website https://rbi.org.in/scripts/BS_ViewRTGS.aspx
Is there any way that a remitting customer can track the remittance transaction?
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 sms.
How can a remitting customer know whether the bank branch of the beneficiary accepts remittance through RTGS?
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 (https://rbi.org.in/scripts/BS_ViewRTGS.aspx
).Considering that more than 131,279 branches are covered under the RTGS system, getting this information would not be difficult.
Whom do I can contact, in case of non-credit or delay in credit to the beneficiary account?
NEFT is a nation-wide system that facilitates individuals to electronically transfer funds from any bank branch to any other bank branch within the country.
What is NEFT?
National Electronic Funds Transfer (NEFT) is a nation-wide system that facilitates individuals to electronically transfer funds from any bank branch to any other bank branch within the country.
Are all bank branches in the country part of the NEFT funds transfer network?
For being part of the NEFT funds transfer network a bank branch has to be NEFT-enabled and should have IFS code number. As at end-November 2009 as many as 62,000 branches / offices of 94 banks in the country (out of around 75,000 bank branches) are NEFT-enabled. Steps are being taken to further widen the coverage both in terms of banks and branches.
How can one know which bank branches are part of the NEFT network?
The list of bank branches participating in the NEFT system is available on the website of Reserve Bank of India at http://www.rbi.org.in/scripts/neft.aspx.Details will also be available with the banks / branches participating in the NEFT system. Many banks have printed their IFS Code Number in the cheque leaves.
Who can transfer funds using NEFT?
Individuals, firms or corporate bodies maintaining accounts with a bank branch can transfer funds using NEFT.
Whether walk in customers can transfer funds by remitting Cash?
Even such individuals, firms or corporates who do not have a bank account (walk in customers) can also deposit cash (Up to Rs.50000/-) at the branch with instructions to transfer funds using NEFT. A separate Transaction Code (No. 50)has been allotted in the NEFT system to facilitate walk-in customers to deposit cash and transfer funds to a beneficiary. Such customers have to furnish full details including complete address, telephone number etc.
Who can receive funds through the NEFT system?
Individuals, firms or Corporates maintaining accounts with a bank branch can receive funds through the NEFT system. It is, therefore, necessary for the beneficiary to have an account with the destination bank branch in the country.
The NEFT system also facilitates one-way cross-border transfer of funds from India to Nepal under transaction code no. 51. This is known as the Indo-Nepal Remittance Facility Scheme. A remitter can transfer funds up to Indian Rupees 50,000/- from any of the NEFT-enabled branches in India to Nepal, irrespective of whether the beneficiary in Nepal maintains an account with a bank branch in Nepal or not. The beneficiary would receive funds in Nepalese Rupees. Further details on the Indo-Nepal Remittance Facility Scheme are available on the website of Reserve Bank of India at http://rbidocs.rbi.org.in/rdocs/content/pdfs/84489.pdf.
Is there any limit on the amount that could be transferred using NEFT?
No. There is no limit ( either minimum or maximum ) on the amount of funds that could be transferred using NEFT. However, for walk-in customers mentioned at Q.5 and Q.6 above, including those remitting funds under the Indo-Nepal Remittance Facility Scheme the maximum amount that could be transferred is Rs. 50,000 only.
whether the system is centre specific or has any geographical restriction?
No, there is no restriction of centers or of any geographical area inside the country. The NEFT system takes advantage of the centralized accounting system in banks. For the purpose, the account of a bank that is originating or receiving funds transfer instructions is operated centrally at Mumbai.The branches participating in NEFT can, however, be located anywhere across the length and breadth of the country.
What are the operating hours of NEFT?
Presently, NEFT operates in 11 batches from 8 am to 7 pm on Monday to Saturday at an interval of one hour between them.
How does the NEFT system operate?
Step-1 : An individual / firm / corporate Body intending to originate or transfer funds through NEFT has to fill-in an application form giving details of the beneficiary name, account type and account number the beneficiary bank branch with IFSC Number of the Bank Branch. The application form will be available at the originating bank branch. The originator authorizes the branch to debit his account and remit the specified amount to the beneficiary. Customers enjoying net banking facility offered by their bankers can initiate the funds transfer request online. Some banks offer the NEFT facility even through the ATMs.Walk-in customers will, however, have to give their contact details like complete address and telephone Number to the branch in addition. This will help the branch to refund the money to the customer in case credit could not be afforded to the beneficiary's bank account or the transaction is rejected /returned for any reason.
Step-2 : The originating bank branch prepares a message and sends the message to its pooling centre (also called the NEFT Service Centre).
Step-3 : The pooling centre forwards the message to the NEFT Clearing Centre (operated by National Clearing Cell, Reserve Bank of India, Mumbai) to be included for the next available batch.
Step-4 : The Clearing Centre sorts the funds transfer transaction messages destination bank-wise and prepares set-off entries to receive funds from (debit) the originating banks and give the funds to (credit) the destination banks. Thereafter, bank-wise remittance messages are forwarded to the destination banks through their pooling centre (NEFT Service Centre).
Step-5 :The destination banks receive the remittance messages received from the Clearing Centre and pass on the credit to the beneficiary accounts.
What is IFSC?
IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. This is a 11 digit code with the first 4 characters representing the bank, and the last 6 characters representing the branch. The 5th character is a 0 (zero). IFSC is used by the NEFT system to route the messages to the destination banks.
How can the IFSC of a bank-branch be found?
Bank-wise list of IFSCs is available with all the bank-branches participating in NEFT. List of bank-branches participating in NEFT and their IFSCs are available on the website of Reserve Bank of India at http://www.rbi.org.in/scripts/neft.aspx. IFSC code numbers are normally printed on cheques issued by branches to their customers. For net banking customers many banks have also enabled online search / pop-up of the IFSC of the destination bank branch.
What are the processing or service charges for NEFT transactions?
a) Inward transactions at destination bank branches (for credit to beneficiary accounts) - Free, NO charges to be levied from beneficiaries.
b) Outward transactions at originating bank branches (charges for the remitter)
-For transactions up to Rs. 10000 - Rs. 2.25 + GST.
-For transactions of above Rs. 10000 to 1 lakh - Rs. 4.75 + GST.
-For transactions of above Rs. 1 lakh to 2 lakhs- Rs.14.75 + GST.
-For transactions of above Rs. 2 lakhs- - Rs. 24.75 + GST.
Note: Charges under the Indo-Nepal Remittance Facility Scheme are:
Rs. 50 for remittances up to Rs. 5,000 and Rs. 75 for remittances above Rs.5,000.
When can the beneficiary expect to get the credit to his bank account?
The beneficiary can expect to get credit for all the batches on week days (i.e.,transactions from 8 am to 7 pm from Monday to Saturday)with in two hours .For example transactions received in 8 am batch has to be processed by the beneficiary bank with in 2 hours (B+2)and if any returns are there the same has to be sent back to sender bank within the prescribed time limit of B+2( i.e,before 11 am batch).
The timelines for remittances to Nepal using the NEFT system (under the Indo-Nepal Remittance Facility Scheme) are separate at http://rbidocs.rbi.org.in/rdocs/content/pdfs/84489.pdf.
Who should be contacted in case of non-credit or delay in credit to the beneficiary account?
The customer to contact the originating Branch for non-credit/delay in credit. One should be aware that Any hurdles/problems at the Message sending Bank / RBI Server / beneficiary bank get reflected in transferring funds. If all the Intermediaries including the servers work smoothly there should not be any delay in crediting the account beyond 2 hours from the originating batch.
what will happen if credit is not afforded to the account of the beneficiary?
If it is not possible to afford credit to the account of the beneficiary for whatever reasons, funds are returned to the remitter (originating customer).
Can NEFT be used to transfer funds from / to NRI or NRE accounts?
Yes. NEFT can be used to transfer funds from or to a Non-Resident Indian (NRI) or Non-Resident External (NRE) accounts in the country. This is, however, is subject to applicability of provisions of the Foreign Exchange Management Act, 2000 (FEMA).
Can inward foreign remittances be received through NEFT?
No. The NEFT system can be used only for remitting Indian Rupees between the participating bank branches in the country.
Can remittances abroad be sent using NEFT?
No. However, a facility is available to send outward remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.
What are the other transactions that could be initiated using NEFT?
The NEFT system can be used to pay credit card dues. A separate Transaction Code (No. 52) has been allotted in the NEFT system to facilitate the payment of credit card dues to member banks. It is necessary to quote the IFSC of the beneficiary card issuing bank to initiate the bill payment transactions using NEFT.
Can a transaction be originated to receive funds from another account?
No. NEFT is a credit-push system i.e., transactions can be originated only to transfer funds to a beneficiary.
Would the originator receive an acknowledgement once the funds are transferred to the account of the beneficiary?
Yes this facility available thorough an alert / message ( sms / mail ) to the customer once credit is afforded to the account of the beneficiary.
We are offering ECS (Electronic Clearing Service) to our customers. ECS is an electronic mode of payment / receipt for transactions that are repetitive and periodic in nature. ECS is used by institutions for making bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc., or for bulk collection of amounts towards telephone / electricity / water dues, cess / tax collections, loan instalment repayments, periodic investments in mutual funds, insurance premium etc. Essentially, ECS facilitates bulk transfer of money from one bank account to many bank accounts or vice versa. ECS includes transactions processed under National Automated Clearing House (NACH) operated by National Payments Corporation of India (NPCI).
ECS Credit is used by an institution for affording credit to a large number of beneficiaries (for instance, employees, investors etc.) having accounts with bank branches at various locations within the jurisdiction of a ECS Centre by raising a single debit to the bank account of the user institution. ECS Credit enables payment of amounts towards distribution of dividend, interest, salary, pension, etc., of the user institution.
ECS Debit is used by an institution for raising debits to a large number of accounts (for instance, consumers of utility services, borrowers, investors in mutual funds etc.) maintained with bank branches at various locations within the jurisdiction of a ECS Centre for single credit to the bank account of the user institution. ECS Debit is useful for payment of telephone / electricity / water bills, cess / tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc., that are periodic or repetitive in nature and payable to the user institution by large number of customers etc.