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Understanding RTGS in Banking

RTGS provides real-time gross settlement of funds transfers individually on a transaction-by-transaction basis without netting. It allows processing of instructions as they are received, with settlement occurring individually in the books of the Reserve Bank of India, making payments final and irrevocable. RTGS is available 24/7 with a minimum transaction amount of Rs. 200,000 and no maximum limit.

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296 views4 pages

Understanding RTGS in Banking

RTGS provides real-time gross settlement of funds transfers individually on a transaction-by-transaction basis without netting. It allows processing of instructions as they are received, with settlement occurring individually in the books of the Reserve Bank of India, making payments final and irrevocable. RTGS is available 24/7 with a minimum transaction amount of Rs. 200,000 and no maximum limit.

Uploaded by

Kavitha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

RTGS(Real Time Gross Settlement)

RTGS
 RTGS is a continuous and real-time settlement of fund-transfers,
individually on a transaction by transaction basis (without netting)
 'Real Time' means the processing of instructions at the time they are
received
 'Gross Settlement' means that the settlement of funds transfer
instructions occurs individually
 The funds settlement takes place in the books of the Reserve Bank of
India, the payments are final and irrevocable
 RTGS is available 24x7x365 with effect from December 14, 2020
 The minimum amount to be remitted through RTGS is ₹ 2,00,000/- with no
upper or maximum ceiling
 In RTGS, the credit is solely based on the account number of the
beneficiary
CHARGES IN RTGS
 The service charges levied by banks for offering
funds transfer through RTGS system:
a) Inward transactions – Free, no charge to be
levied.
b) Outward transactions – ₹ 2,00,000/- to
5,00,000/- : not exceeding ₹ 24.50/-; (exclusive of
tax, if any)
c) Above ₹ 5,00,000/- : not exceeding ₹ 49.50/-.
(exclusive of tax, if any)
Settlement/Non-settlement of RTGS
 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 must credit the beneficiary's account within 30
minutes of receiving the funds transfer message
 if it is not possible to credit the funds to the beneficiary
customer’s account for any reason, the funds received by the RTGS
member bank will be returned to the originating bank within one
hour of receipt of the payment at the Payment Interface (PI) or
before the end of the RTGS Business day, whichever is earlier
 In case of any delay in returning the failed payment, the
originating customer is eligible to receive compensation at current
repo rate plus 2%.

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