Prepared by:

PANKAJ KUMAR

AICAR BUSINESS SCHOOL

EMAIL ID : pankajku2020@gmail.com

WHAT IS INTER BANK TRANSFER?

Inter Bank Transfer is a special service that allows you to transfer funds electronically

to accounts in other banks in India through:

o NEFT - The acronym “NEFT” stands for National Electronic Funds Transfer. Funds

are transferred to the credit account with the other participating Bank using RBI's

NEFT service. RBI acts as the service provider and transfers the credit to the other

bank's account.

o RTGS –The acronym “RTGS” stands for Real Time Gross Settlement. The RTGS

system facilitates transfer of funds from accounts in one bank to another on a

“real time” and on “gross settlement” basis. The RTGS system is the fastest

possible inter bank money transfer facility available through secure banking

channels in India. 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.

HOW RTGS IS DIFFERENT FROM NEFT?

NEFT RTGS

NEFT are electronic fund transfer

modes that operate 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.

In RTGS, transactions are

processed continuously throughout

the RTGS business hours.

Minimum Maximum

RTGS Rs. 1 Lakh Rs. 1 Lakh

NEFT No Limit Rs. 1 Lakh

RETAIL INTERNET BANKING

Minimum Maximum

RTGS Rs. 1 Lakh No Limit

NEFT No Limit No Limit

CORPORATE INTERNET BANKING

Day Start Time End Time

Monday to Friday 9:00 hrs 16:00 hrs

Saturday 9:00 hrs 12:00 hrs

Day Start Time End Time

Monday to Friday 8:00 hrs 16:00 hrs

Saturday 8:00 hrs 11:30 hrs

RTGS

NEFT

NEFT transactions are settled in batches based on the following timings:

• 6 settlements on weekdays - at 09:00, 11:00, 12:00, 13:00, 15:00 and 17:00 hrs.

• 3 settlements on Saturdays - at 09:00, 11:00 and 12:00 hrs.

INTERNET BANKING HOURS

MANDATORY INFORMATION

The Remitter has to provide the following details:

o Amount to be remitted

o Account number which is to be debited

o Name of the beneficiary bank

o Name of the beneficiary

o Account number of the beneficiary

o Remarks or description, if any

o The IFSC code of the beneficiary branch

RBI EFT SYSTEM

Step 1 : Filling EFT Application

Step 2 : Preparing Schedule & send application to service branch

Step 3 : Prepares EFT data file and transmit the same to the local RBI for settlement

Step 4 : RBI at remitting centre consolidates the files received from all banks, sort

them city wise and prepares vouchers for debiting the remitting bank on Day-

1 itself

Step 5 : RBI at the destination centre receives the files from the originating centres,

consolidates them and sorts them bank-wise. Thereafter, bank-wise

remittance data files are transmitted to banks on Day 1 itself. Bank-wise

vouchers are prepared for crediting the receiving banks’ accounts the same

day or next day

Step 6 : On Day 1/2 morning the receiving banks at the destination centres process

the remittance files transmitted by RBI and forward credit reports to the

destination branches for crediting the beneficiaries’ accounts.

PROCESSING CHARGES/SERVICE CHARGES

While RBI has waived its processing charges for all electronic payment

products till March 31, 2008, levy of service charges by banks is left to the

discretion of the respective banks.

Amount Service Charge

NEFT Upto Rs. 1 Lakh Rs. 5

Rs. 1 Lakh & above Rs. 25

RTGS Upto Rs. 5 Lakh Rs. 25

Rs. 5 Lakh & above Rs. 50

TRACKING OF TRANSACTIONS

o It would depend on the arrangement between the remitting customer

and the remitting bank.

o Some banks with internet banking facility provide this service.

o 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.

WHOM DO I CAN CONTACT IN CASE OF NON CREDIT OR DELAY IN CREDIT TO ACCOUNT

Contact your bank / branch. If the issue is not resolved satisfactorily, the

Customer Service Department of RBI may be contacted at :–

The Chief General Manager,

Reserve Bank of India,

Customer Service Department,

1st Floor, Amar Building, Fort,

Mumbai-400001

VOLUME AND VALUE OF TRANSACTIONS

On a typical day, RTGS handles about 14000

transactions a day for an approximate value of

Rs.1,50,000 crore.Source : RBI