Saturday, December 20, 2014


      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.
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)

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