Q.1 WHAT IS RTGS SYSTEM?
The acronym "RTGS" stands for Real Time Gross Settlement. 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.
Q.2 HOW RTGS IS DIFFERENT FROM NATIONAL ELECTRONICS FUNDS TRANSFER SYSTEM
NEFT is also 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 at a particular point of time. All transactions
are held up till that time. For example, NEFT settlement takes place 6 times a
day during the week days (9.30 am, 10.30 am, 12.00 noon,1.00 pm, 3.00 pm and
4.00pm) and 3 times during Saturdays (9.30 am, 10.30 am and 12.00 noon) 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.
Q.3. IS THERE ANY MINIMUM / MAXIMUM AMOUNT STIPULATION FOR RTGS
The RTGS system is primarily for large value transactions. The
minimum amount to be remitted through RTGS is Rs. 1 lakh. There is no upper
ceiling for RTGS transactions. No minimum or maximum stipulation has been fixed
for NEFT transactions.
Q.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 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 two hours of receiving the funds transfer message.
Q.5. WOULD THE REMITTING CUSTOMER RECEIVE AN ACKNOWLEDGEMENT OF MONEY
CREDITED TO THE BENEFICIARY'S ACCOUNT?
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 that money has been delivered to the
Q.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.
Q.7. TILL WHAT TIME RTGS SERVICE WINDOW IS AVAILABLE?
The RTGS service window for customer's transactions is available
from 9.00 hours to 16.30 hours on week days and from 9.00 hours to12.00 noon on
Saturdays i.e to accept the customer transactions for settlement at the RBI
during 9.00 hours to 16.00 hours on week days and between 9.00 hours and 12.00
noon on Saturday. However, the timings between these hours would vary depending
on the customer timings the branches have. For inter-bank transactions, the
service window is available from 9.00 hours to 18.00 hours on week days and
from 9.00 hours to 14.00 hours on Saturdays.
Q.8. WHAT ABOUT PROCESSING CHARGES / SERVICE CHARGES FOR RTGS TRANSACTIONS?
Processing Charges/ Service charges for RTGS transactions are cheap
and which can be found on our website
Q.9. 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
His account number which is 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
Q.10. 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 also available in the cheque leaf. This code number and bank
branch details can be communicated by the beneficiary to the remitting
customer. IFSC Codes of Canara Bank branches can be found on our website.
Q.11. DO ALL BANK BRANCHES IN INDIA PROVIDE RTGS SERVICE?
No, all the bank branches in India are not RTGS enabled. As on
April 30, 2008 more than 44,000 bank branches are RTGS enabled. The list of
such branches is available on RBI website
. List of Canara Bank branches can be
found on our website
Q.12. IS THERE ANY WAY THAT A REMITTING CUSTOMER CAN TRACK THE REMITTANCE
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.
Q.13. 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 :
that more than 44,000 branches at more than 5,000 cities / towns / taluka
places are covered under the RTGS system, getting this information would not be
Q.14. HOW MUCH VOLUME AND VALUE OF TRANSACTIONS ARE ROUTED THROUGH RTGS ON
A TYPICAL DAY?
On a typical day, RTGS handles about 30,000 transactions a day for
an approximate value of Rs.2,00,000 crore.
Q.15. WHOM DO I CAN CONTACT, IN CASE OF NON-CREDIT OR DELAY IN CREDIT TO
THE BENEFICIARY ACCOUNT?
Contact your bank / branch. If the issue is not resolved
satisfactorily, the Customer Service Section of our Bank may be contacted at-
THE DEPUTY GENERAL MANAGER,
CUSTOMER SERVICE SECTION
M & CRM WING, HEAD OFFICE
112, J C ROAD
BANGALORE – 560 002