Banking
Real Time Gross Settlement (RTGS):
RTGS is a fund transferring system in which
funds are transferred from one bank to
another on a ‘Real Time’ and ‘Gross’ basis.
Settlement in ‘Real Time’ means that there
is no waiting period. The transaction is
settled as soon as it is processed.
‘Gross’ settlement means that the
transaction is made on an one to one basis
without bunching with any other transaction.
Features:
1. RTGS is not available in all the bank
branches in India. Only CBS enabled bank
branches provide this facility.
2. RTGS transactions are processed
individually and continuously throughout the
banking hours rather than in batches.
3. The minimum amount for a RTGS transaction
is ₹ 2 lakh, while there is no upper limit.
4. The receiving or beneficiary bank must
credit the customer’s account within thirty
minutes of receiving the fund transfer
message.
5. The transfer is final and irrevocable.
, National Electronic Funds Transfer
(NEFT):
NEFT is a countrywide system by which an
individual, firm or a company can
electronically transfer funds from any bank
branch to another individual, firm or
company having an account with any other
bank branch in the country.
The funds transfer takes place at a
particular period of time. All transfers are
held till that time. In other words, NEFT
transactions are settled in batches.
Features:
1. A bank branch must be NEFT enabled to
become the part of the NEFT fund transfer
network.
2. An individual, firm or a company can make
use of NEFT even without a bank account by
depositing cash at a NEFT enabled bank
branch. **
3. In order to receive funds through the
NEFT system, an individual, firm or a
company must have an account with a NEFT
enabled bank branch.
4. In case one does not have a bank account,
the maximum amount that can be transferred
using the NEFT system is ₹ 49999.
Real Time Gross Settlement (RTGS):
RTGS is a fund transferring system in which
funds are transferred from one bank to
another on a ‘Real Time’ and ‘Gross’ basis.
Settlement in ‘Real Time’ means that there
is no waiting period. The transaction is
settled as soon as it is processed.
‘Gross’ settlement means that the
transaction is made on an one to one basis
without bunching with any other transaction.
Features:
1. RTGS is not available in all the bank
branches in India. Only CBS enabled bank
branches provide this facility.
2. RTGS transactions are processed
individually and continuously throughout the
banking hours rather than in batches.
3. The minimum amount for a RTGS transaction
is ₹ 2 lakh, while there is no upper limit.
4. The receiving or beneficiary bank must
credit the customer’s account within thirty
minutes of receiving the fund transfer
message.
5. The transfer is final and irrevocable.
, National Electronic Funds Transfer
(NEFT):
NEFT is a countrywide system by which an
individual, firm or a company can
electronically transfer funds from any bank
branch to another individual, firm or
company having an account with any other
bank branch in the country.
The funds transfer takes place at a
particular period of time. All transfers are
held till that time. In other words, NEFT
transactions are settled in batches.
Features:
1. A bank branch must be NEFT enabled to
become the part of the NEFT fund transfer
network.
2. An individual, firm or a company can make
use of NEFT even without a bank account by
depositing cash at a NEFT enabled bank
branch. **
3. In order to receive funds through the
NEFT system, an individual, firm or a
company must have an account with a NEFT
enabled bank branch.
4. In case one does not have a bank account,
the maximum amount that can be transferred
using the NEFT system is ₹ 49999.
