<< BANKING GK (PART-1) >>
1. WHAT IS RTGS ?
RTGS is stands for “Real Time
Gross Settlement”.
Ø RTGS system is a funds
transfer system where transfer of money or securities takes place from one bank
to another bank on a “REAL TIME” and “Gross” basis.
Ø The settlement is on Gross Basis unlike usual
clearing system which is on Net basis.
Ø In RTGS, RBI acts as the settlement agent between
the banks, settlement risk and systemic risk are
minimized
because of RTGS. It is the fastest mode of transaction.
Ø Credit Time :The beneficiary bank has to credit the beneficiary's account within 30
minutes
Ø Timings : 8 AM to 8 PM
for Monday to Friday and For
Saturdays it is
8 AM to 3:30 PM.
Ø Transactions Limit:Rs. 2 Lakh and
above and there is no No upper ceiling.
Ø
Transactions Charges – For amount 2 - 5 lakh not exceeding 30.00 per transaction.
For Above 5 lakh not exceeding55.00 per transaction.
For Above 5 lakh not exceeding55.00 per transaction.
2. What is NEFT?
NEFT is “National
Electronic Funds Transfer”
Ø NEFT enables funds transfer from one bank to
another but works a bit differently than RTGS.
Ø NEFT uses an Indian Financial System
code (IFSC). It is an alpha numeric code
that identifies the bank
branches. It
has 11 digits – 1stfour represent Bank code, 5threserved
as control code (presently 0)and remaining 6are branch code.
Ø Under NEFT,individuals, firms and corporate
can electronically transfer funds from any bankbranch to any
individual,
firm or corporate having an account with any other bank branch in the country
participating in the system.
Ø Credit Time : Same day or next working day
Ø Timings: 9 AM to
7 PM on weekdays and 8 AM to 1 PM on
Saturday.
Ø Transactions Limit There is no limit either minimum or maximum. However, maximum
amount per transaction is limited to Rs.50,000/- for cash-based remittances to
Nepal.
Ø Transactions Charges
- For transactions up to Rs 10,000
not exceeding Rs 2.50 (+ Service Tax)
- For transactions
above Rs 10,000 up to Rs 1 lakh not exceeding Rs 5 (+ Service Tax)
- For
transactions above Rs 1 lakh and up to Rs 2 lakhsnot exceeding Rs 15 (+ Service
Tax)
- For
transactions above Rs 2 lakhs: not exceeding Rs 25 (+ Service Tax)