Frequently Asked Questions (FAQ) on

Real Time Gross Settlement (RTGS) System

Q.1 What is RTGS System?
Ans 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. onsidering that money transfer takes place in
the books of the Reser!e "ank of #ndia$ the payment is taken
as %nal and irre!ocable.
Q.2 o! RTGS is di"erent #rom $le%troni% Fund Trans#er
System ($FT) or &ational $le%troni%s Funds Trans#er
System (&$FT)?
Ans &'T and (&'T are electronic fund transfer modes that operate
on a deferred net settlement )*(S+ basis which settles
transactions in batches. #n *(S$ the settlement takes place at
a particular point of time. All transactions are held up till that
time. 'or e,ample$ (&'T settlement takes place - times a day
during the week days )../0 am$ 10./0 am$ 12.00 noon. 1.00
pm$ /.00 pm and 3.00 pm+ and / times during Saturdays )../0
am$ 10./0 am and 12.00 noon+. Any transaction initiated after
a designated settlement time would ha!e to wait till the ne,t
designated settlement time. ontrary to this$ in RTGS$
transactions are processed continuously throughout the RTGS
business hours.
Q .' (s there any minimum ) ma*imum amount sti+ulation
#or RTGS transa%tions?
Ans. The RTGS system is primarily for large !alue transactions. The
minimum amount to be remitted through RTGS is Rs.1 lakh.
There is no upper ceiling for RTGS transactions. (o minimum
or ma,imum stipulation has been %,ed for &'T and (&'T
transactions.
Q,. What is the time taken #or e"e%tin- #unds trans#er
#rom one a%%ount to another under RTGS?
Ans. 4nder normal circumstances the bene%ciary branches are
e,pected to recei!e the funds in real time as soon as funds
are transferred by the remitting bank. The bene%ciary bank
has to credit the bene%ciary5s account within two hours of
recei!ing the funds transfer message.

Q.. Would the remittin- %ustomer re%ei/e an
a%kno!led-ement o# money %redited to the
0ene1%iary2s a%%ount?
Ans The remitting bank recei!es a message from the Reser!e "ank
that money has been credited to the recei!ing bank. "ased on
this the remitting bank can ad!ise the remitting customer that
money has been deli!ered to the recei!ing bank.
Q.3 Would the remittin- %ustomer -et 0a%k the money i# it
is not %redited to the 0ene1%iary2s a%%ount? When?
Ans 6es. #t is e,pected that the recei!ing bank will credit the
account of the bene%ciary instantly. #f the money cannot be
credited for any reason$ the recei!ing bank would ha!e to
return the money to the remitting bank within 2 hours. 7nce
the money is recei!ed back by the remitting bank$ the original
debit entry in the customer5s account is re!ersed.
Q.4 Till !hat time RTGS ser/i%e !indo! is a/aila0le?
2
Ans The RTGS ser!ice window for customer5s transactions is
a!ailable from ..00 hours to 18.00 hours on week days and
from ..00 hours to 12.00 noon on Saturdays i.e. to accept the
customer transactions for settlement at the R"# during ..00
hours to 18.00 hours on week days and between ..00 hours
and 12.00 noon on Saturday. 9owe!er$ the timings between
these hours would !ary depending on the customer timings
the branches ha!e. 'or inter:bank transactions$ the ser!ice
window is a!ailable from ..00 hours to 1;.00 hours on week
days and from ..00 hours to 13.00 hours on Saturdays.
Q.5 What a0out 6ro%essin- 7har-es)Ser/i%e 7har-es #or
RTGS transa%tions?
Ans <hile R"# has wai!ed its processing charges for all electronic
payment products till =arch /1$ 200>$ le!y of ser!ice charges
by banks is left to the discretion of the respecti!e banks. The
bank:wise details of charges le!ied are a!ailable on the R"#
website ? www.rbi.org.in.
Q.8 What is the essential in#ormation that the remittin-
%ustomer !ould ha/e to #urnish to a 0ank #or the
remittan%e to 0e e"e%ted?
Ans The remitting customer has to furnish the following
information to a bank for e@ecting a RTGS remittanceA
1. Amount to be remitted
2. 9is account number which is to be debited
/. (ame of the bene%ciary bank
3. (ame of the bene%ciary customer
8. Account number of the bene%ciary customer
-. Sender to recei!er information$ if any
;. The #'S code of the recei!ing branch
Q.19 o! !ould one kno! the (FS7 %ode o# the re%ei/in-
0ran%h?
3
Ans. The bene%ciary customer can obtain the #'S code from his
branch. The #'S code is also a!ailable in the cheBue leaf. This
code number and bank branch details can be communicated
by the bene%ciary to the remitting customer.
Q.11 :o all 0ank 0ran%hes in (ndia +ro/ide RTGS ser/i%e?
Ans (o$ all the bank branches in #ndia are not RTGS enabled. As on
Canuary /1$ 200; more than 2-$000 bank branches are RTGS
enabled. The list of such branches is a!ailable on R"# website
www.rbi.org.in/Scripts/Bs_viewRTGS.aspx
Q.12 (s there any !ay that a remittin- %ustomer %an tra%k
the remittan%e transa%tion?
Ans #t would depend on the arrangement between the remitting
customer and the remitting bank. Some banks with internet
banking facility pro!ide this ser!ice. 7nce the funds are
credited to the account of the bene%ciary bank$ the remitting
customer gets a con%rmation from his bank either by an e:
mail or by a short message on the mobile.
Q.1'. Whom do ( %an %onta%t; in %ase o# non<%redit or
delay in %redit to the 0ene1%iary a%%ount?
Ans ontact your bank D branch. #f the issue is not resol!ed
satisfactorily$ the ustomer Ser!ice *epartment of R"# may be
contacted on cgmcsd@rbi.org.in or write to :
The hief General =anager$
Reser!e "ank of #ndia$
ustomer Ser!ice *epartment$
1st 'loor$ Amar "uilding$ 'ort$
=umbai:300001
Q.1, o! mu%h /olume and /alue o# transa%tions are routed
throu-h RTGS on a ty+i%al day?
Ans 7n a typical day$ RTGS handles about 13000 transactions a
day for an appro,imate !alue of Rs.1$80$000 crore.
4
Q.1. o! %an a remittin- %ustomer kno! !hether the 0ank
0ran%h o# the 0ene1%iary a%%e+ts remittan%e throu-h
RTGS?
Ans 'or a funds transfer to go through RTGS$ both the sending
bank branch and the recei!ing bank branch would ha!e to be
RTGS enabled. The lists are readily a!ailable at all RTGS
enabled branches. "esides$ the information is a!ailable at R"#
website )www.rbi.org.in/Scripts/Bs_viewRTGS.aspx +. onsidering
that more than 2-$000 branches at more than /$000 citiesD
towns and taluka places are co!ered under the RTGS system$
getting this information would not be diEcult.

Frequently Asked Questions (FAQ) on
&ational $le%troni% Funds Trans#er (&$FT) System
Q.1. What is &$FT System?
Ans (ational &lectronic 'unds Transfer )(&'T+ system is a nation
wide funds transfer system to facilitate transfer of funds from
any bank branch to any other bank branch.
Q. 2. Are all 0ank 0ran%hes in the system +art o# the #unds
trans#er net!ork?
Ans (o. As on Canuary /1$ 200;$ 1>800 branches of 8/ banks are
participating. Steps are being taken to widen the co!erage
both in terms of banks and branches.
Q.'. Whether the system is %entre s+e%i1% or has any
-eo-ra+hi%al restri%tion?
Ans (o$ there is no restriction in the number of centres or of any
geographical area. The system uses the concept of centralised
accounting system and the bank5s account that are sending or
recei!ing the funds transfer instructions$ gets operated at one
5
centre$ !iF$ =umbai only. The indi!idual branches participating
in (&'T could be located anywhere across the country$ as
detailed in the list pro!ided on R"# website.
Q.,. What is the #unds a/aila0ility s%hedule #or the
0ene1%iary?
Ans The bene%ciary gets the credit on the same *ay or the ne,t
*ay depending on the time of settlement.
Q... o! does the &$FT system o+erate?
Ans AStep:1A The remitter %lls in the (&'T Application form gi!ing
the particulars of the bene%ciary )bank:branch$ bene%ciary5s
name$ account type and account number+ and authorises the
branch to remit the speci%ed amount to the bene%ciary by
raising a debit to the remitter5s account. )This can also be
done by using net banking ser!ices o@ered by some of the
banks+
Step:2A The remitting branch prepares a Structured 'inancial
=essaging Solution )S'=S+ message and sends it to its Ser!ice
entre for (&'T.
Step:/A The Ser!ice entre forwards the same to the local R"#
)(ational learing ell$ =umbai+ to be included for the ne,t
a!ailable settlement. Gresently$ (&'T is settled in si, batches
at 0./0$ 10/0$ 1200$ 1/00$ 1800 and 1-00 hours on
weekdays and 0./0$ 10/0 and 1200 hours on Saturdays
Step:3A The R"# at the clearing centre sorts the transactions
bank:wise and prepares accounting entries of net debit or
credit for passing on to the banks participating in the system.
Thereafter$ bank:wise remittance messages are transmitted to
banks.
Step:8A The recei!ing banks process the remittance messages
recei!ed from R"# and a@ect the credit to the bene%ciaries5
accounts.
6
Q.3. o! is this &$FT System an im+ro/ement o/er the
e*istin- R=(<$FT System?
Ans The R"#:&'T system is con%ned to the 18 centres where R"# is
pro!iding the facility$ whereas there is no such restriction in
(&'T as it is based on the centralised concept. The detailed
list of branches of !arious banks participating in (&'T system
is a!ailable on our website. The system also uses the state:of:
the:art technology for the communication$ security etc$ and
thereby o@ers better customer ser!ice.
Q.4. o! is it di"erent #rom RTGS and $FT?
AnsA (&'T is an electronic payment system to transfer funds from
any part of country to any other part of the country and works
on net settlement basis$ unlike RTGS that works on gross
settlement basis. <hile &'T is restricted to the %fteen centers
)only where R"# oEces are located+$ (&'T is a nation:wide
electronic fund transfer system.
Q.5. Any limit on the amount o# indi/idual transa%tion?
Ans There is no !alue limit for indi!idual transactions.
Q.8. What a0out 6ro%essin- 7har-es)Ser/i%e 7har-es
Ans <hile R"# has wai!ed the processing charges till =arch /1$
200>$ le!y of ser!ice charges by banks is left to the discretion
of the respecti!e banks. The bank:wise details of charges
le!ied are a!ailable on the R"# website.
Q.19. o! !ill ( kno! !hi%h are the 0ran%hes +arti%i+atin-
in the &$FT?
Ans R"# publishes the list of bank branches participating in the
(&'T on its website i.e. www.rbi.org.in .

Q.11. What is (FS 7ode ((FS7)? o! it is di"erent #rom
>(7R %ode?
Ans #ndian 'inancial System ode )#'S+ is an alpha numeric code
designed to uniBuely identify the bank:branches in #ndia. This
is 11 digit code with %rst 3 characters representing the banks
code$ the ne,t character reser!ed as control character
)Gresently 0 appears in the %fth position+ and remaining -
characters to identify the branch. The =#R code has . digits
to identify the bank:branch.
Q.12. o! !ill ( kno!; !hat is the (FS 7ode o# my 0ank<
0ran%h?
Ans R"# had since ad!ised all the banks to print #'S on cheBues
lea!es issued to their customers. 6ou may also contact your
bank:branch and get the #'S ode of that branch.
Q.1'. Whom ( %an %onta%t; in %ase o# non<%redit or
delay in %redit to the 0ene1%iary a%%ount?
Ans ontact your bank D branch. #f the issue is not resol!ed
satisfactorily$ the ustomer Ser!ice *epartment of R"# may be
contacted on cgmcsd@rbi.org.in or write to :
The hief General =anager$
Reser!e "ank of #ndia$
ustomer Ser!ice *epartment$
1st 'loor$ Amar "uilding$ 'ort$
=umbai:300001
Q.1,. (s it ne%essary to ha/e a 0ank a%%ount to
ori-inate the &$FT transa%tion?
Ans 6es$ (&'T is an account to account funds transfer system.
Q.1.. (s it ne%essary that the 0ene1%iary should ha/e
an a%%ount at the destination 0ank<0ran%h?
Ans 6es$ (&'T is an account to account funds transfer system.
Q.13. 7an ( re%ei/e #orei-n remittan%es throu-h &$FT?
!
Ans This system can be used only for remitting #ndian Rupee
among the participating banks within the country.
Q.14. 7an ( send remittan%es a0road usin- the &$FT?
Ans (o
Q.15. 7an ( ori-inate a transa%tion to re%ei/e #unds
#rom another a%%ount?
Ans (o
Q.18. 7an ( send)re%ei/e #unds #rom)to &R( a%%ounts?
AnsA 6es$ subject to applicability of pro!isions of '&=A
Q.29. Would the remittin- %ustomer re%ei/e an
a%kno!led-ement o# money ha/in- 0een %redited to
the 0ene1%iary2s a%%ount?
AnsA Acknowledgement is generated for the customer at his branch
informing him that his remittance is recei!ed by the
bene%ciary. 9owe!er the mode of communication would
depend on the facility pro!ided by bank D branch.
Q.21. Would the remittin- %ustomer -et 0a%k the money
i# it is not %redited to the 0ene1%iary?s a%%ount?
AnsA 6es$ the remitting customer gets back the money if it is not
credited to the bene%ciary account.
Q.22. Till !hat time &$FT ser/i%e !indo! is a/aila0le?
AnsA There are si, settlements at 0./0$ 10/0$ 1200$ 1/00$ 1800
and 1-00 hours on weekdays and 0./0$ 10/0 and 1200 hours
on Saturdays.
Q.2'. What is the essential in#ormation that the
remittin- %ustomer !ould ha/e to #urnish #or the
remittan%e to 0e e"e%ted?
"
AnsA The essential information that the remitting customer has to
furnish isA
"ene%ciary details such as bene%ciary name and
account number
(ame and #'S of the bene%ciary bank branch.
Q.2,. (s there any !ay a remittin- %ustomer %an tra%k
the remittan%e transa%tion?
AnsA The remitting customer can track the remitting transaction
through the remitting branch only$ as the remitting branch is
informed about the status of the remitted transactions.
#$

Frequently Asked Questions (FAQ) on
$le%troni% 7learin- Ser/i%e<($7S)
Q.1. What is $le%troni% 7learin- Ser/i%e ($7S)?
Ans #t is a mode of electronic funds transfer from one bank
account to another bank account using the ser!ices of a
learing 9ouse. This is normally for bulk transfers from one
account to many accounts or !ice:!ersa. This can be used
both for making payments like distribution of di!idend$
interest$ salary$ pension$ etc. by institutions or for collection of
amounts for purposes such as payments to utility companies
like telephone$ electricity$ or charges such as house ta,$ water
ta,$ etc or for loan installments of %nancial institutionsDbanks
or regular in!estments of persons.
Q.2. What are the ty+es o# $7S? (n !hat !ay they are
di"erent #rom ea%h other?
Ans There are two types of &S called &S )redit+ and &S
)*ebit+.
&S )redit+ is used for a@ording credit to a large number of
bene%ciaries by raising a single debit to an account$ such as
di!idend$ interest or salary payment.
&S )*ebit+ is used for raising debits to a number of accounts
of consumersD account holders for crediting a particular
institution.
$7S 7redit System
Q.'. Who %an initiate an $7S (7redit) transa%tion?
Ans &S payments can be initiated by any institution )called &S
user+ who ha!e to make bulk or repetiti!e payments to a
number of bene%ciaries. They can initiate the transactions
##
after registering themsel!es with an appro!ed clearing house.
&S users ha!e also to obtain the consent as also the account
particulars of the bene%ciary for participating the &S
clearings.
The &S user5s bank is called as the sponsor bank under the
scheme and the &S bene%ciary account holder is called the
destination account holder. The destination account holder5s
bank or the bene%ciary5s bank is called the destination bank.
The bene%ciaries of the regular or repetiti!e payments can
also reBuest the paying institution to make use of the &S
)redit+ mechanism for e@ecting payment.
Q.,. o! does the $7S 7redit system !ork?
Ans The &S users intending to e@ect payments ha!e to submit the
data in a speci%ed format to one of the appro!ed clearing
houses. The list of the appro!ed clearing houses or the list of
centres where the &S facility has been pro!ided is a!ailable
at www.rbi.org.in.
The clearing house would debit the account of the &S user
through the account of the sponsor bank on the appointed day
and credit the accounts of the recipient banks$ for a@ording
onward credit to the accounts of the ultimate bene%ciaries.
Q... At !hi%h o# the %entres $7S #a%ility is a/aila0le?
Ans At present &S facility is a!ailable at more than -0 centres
and the full list is a!ailable at the web:site of R"#.
The bene%ciaries need to maintain an account with one of the
banks at these centres in order to a!ail of the bene%t of &S.
#2
Q.3. o! does a 0ene1%iary +arti%i+ate in $7S (7redit )
s%heme?
Ans The bene%ciary has to furnish a mandate gi!ing his consent to
a!ail of the &S facility. 9e should also communicate to the
&S user the details of his bank branch and account
particulars. Such authorisation form is called a mandate.
Q.4. Will there 0e any need #or the 0ene1%iary to alter this
mandate?
Ans 6es. #n case the information D account particulars undergo
change$ then he has to notify the &S user to carryout
changes in order to ensure continued bene%ts from the &S
user. #n case the account particulars at the destination branch
do not match$ the destination branches would return the
credit through their ser!ice branch to the clearing house.
Q.5. Who !ill %ommuni%ate the 0ene1%iaries2 a0out the
%redit?
Ans #t is the responsibility of the &S user to communicate to the
bene%ciary the details of credit that is being a@orded to his
account$ indicating the proposed date of credit$ amount and
the relati!e particulars of the payment$ so that the bene%ciary
can match the same with the details furnished by the bank in
the account statement D passbook.
Q.8. What are the ad/anta-es to the ultimate 0ene1%iary?
Ans
The ultimate bene%ciary need not make freBuent !isits to
his bank for depositing the physical paper instruments.
9e need not apprehend loss of instrument and fraudulent
encashment.
The delay in realisation of proceeds after receipt of paper
instrument is ob!iated.
#3
Q.19. o! does the s%heme 0ene1t the $7S user<like
%or+orate 0odies) institutions?
Ans
The &S user sa!es on administrati!e machinery for
printing$ dispatch and reconciliation.
A!oids chances of loss of instruments in postal transit.
A!oids chances of frauds due to fraudulent access to the
paper instruments and encashment.
Ability to make payment and ensure that the bene%ciaries5
account gets credited on a designated date.
Q.11. What are the ad/anta-es to the 0anks?
Ans
"anks handling &S get freed of paper handling.
Gaper handling also creates lot of pressure on banks as they
ha!e to encode the instruments$ present them in clearing$
monitor their return and follow up with the concerned bank
and customers.
#n &S banks simply get the payment particulars relating to
their customers. All they need to do is to match the account
particulars like name$ aDc number and credit the proceeds.
<here!er the details do not match$ they ha!e to return it
back$ as per the procedure.
Q.12. o! %an the %ustomer tra%k<do!n these
+ayments?
Ans "anks ha!e been ad!ised to ensure that the pass:books D
statements gi!en to the customers reHect the particulars of
the transaction pro!ided by the &S users. ustomers can
match these entries with the ad!ice recei!ed by them from
the payment institution.
#4
Q.1'. (s there any limit on the amount o# (ndi/idual
transa%tions?
Ans (o !alue limit on the amount of indi!idual transactions has
been prescribed under the scheme.
Q.1,. What are the 6ro%essin- ) Ser/i%e %har-es? (s it a
%ostly ser/i%e?
Ans R"# has since deregulated Ser!ice harges to be le!ied by
sponsor banks. As regards Grocessing harges le!ied by R"#
and other banks managing the clearing houses$ the same has
been wai!ed till =arch /1$ 200>.
Q.1.. (s it ne%essary #or the %or+orates ) institutions to
%olle%t mandate #rom the in/estors?
Ans 6es. A model mandate form has been prescribed for the
purpose. Gayment processing by banks becomes easier once
the database is prepared. S&"# has also issued guidelines to
in!estors to furnish their account numbers in their share
applications for printing the same on the interest D di!idend
warrants$ collecting the account particulars and mandates
may not pose much problem.
$7S :e0it system
Q.13. What is $7S (:e0it) s%heme?
Ans #t is a scheme under which an account holder with a bank can
authorise an &S user to reco!er an amount at a prescribed
freBuency by raising a debit in his account. The &S user has
to collect an authorisation which is called &S mandate for
raising such debits. These mandates ha!e to be endorsed by
the bank branch maintaining the account.
Q.14. o! does the s%heme !ork?
#5
Ans Any &S user desirous of participating in the scheme has to
register with an appro!ed clearing house. The list of appro!ed
clearing houses is a!ailable at R"# web:site www.rbi.org.in.

9e should also collect the mandate forms from the
participating destination account holders$ with bank5s
acknowledgement. A copy of the mandate should be a!ailable
with the drawee bank.
The &S user has to submit the data in speci%ed form through
the sponsor bank to the clearing house. The clearing house
would pass on the debit to the destination account holder
through the clearing system and credit the sponsor bank5s
account for onward crediting the &S user. All the unprocessed
debits ha!e to be returned to the sponsor bank within the time
frame speci%ed. "anks will treat the electronic instructions
recei!ed through the clearing system on par with the physical
cheBues.
Q.15. What are the ad/anta-es to the ultimate
0ene1%iary?
Ans
Trouble free: eliminates the need to go to the collection
centres D banks by the customers and no need to stand in
long IJKs for payment
Geace of mind: ustomers also need not track down
payments by last dates.
The debits would be monitored by the &S users.
Q.18. o! does the s%heme 0ene1t the $7S user<like
%or+orate 0odies) institutions?
Ans
#6
The &S user sa!es on administrati!e machinery for
collecting the cheBues$ monitoring their realisation and
reconciliation
"etter cash management.
A!oids chances of frauds due to fraudulent access to the
paper instruments and encashment.
Realise the payments on a single date instead of fractured
receipt of payments.
Q.29. What are the ad/anta-es to the 0anks?
Ans
"anks handling &S get freed of paper handling.
Gaper handling also creates lot of pressure on banks as they
ha!e to encode the instruments$ present them in clearing$
monitor their return and follow up with the concerned bank
and customers.
#n &S banks simply get the mandate particulars relating to
their customers. All they need to do is to match the account
particulars like name$ aDc number and debit the accounts.
<here!er the details do not match$ they ha!e to return it
back$ as per the procedure.
#
Q.21. 7an the mandate -i/en on%e 0e !ithdra!n or
sto++ed?
Ans 6es. The mandate gi!en is on par with a cheBue issued by a
customer. The only stipulation under the scheme is that the
customer has to gi!e prior notice to the &S user$ to ensure
that they do not include the debits.
Q.22. 7an the %ustomer sti+ulate any ma*imum de0it;
+ur+ose or /alidity +eriod #or the mandate?
Ans 6es. #t is left to the choice of the indi!idual customer and the
&S user to %nalise these aspects. The mandate can contain a
ma,imum ceilingL it can also specify the purpose as also a
!alidity period.
Q.2'. What is the %urrent %o/era-e o# the s%heme?
Ans At present the scheme is in operation at 18 R"# centres )i.e.
centres where R"# manages the learing 9ouse operations+
and at other centres where Gublic Sector "anks manage the
clearing operations. The list of centres is a!ailable at the R"#
web:site under the procedural guidelines.
Q.2,. 6ro%essin- %har-es on indi/idual transa%tions
Ans R"# has deregulated the ser!ice charges that could be le!ied
by sponsor banks. R"# has wai!ed the processing charges
le!ied by R"# and other banks managing the clearing houses
till =arch 200>.
Q.2.. Whi%h are the institutions eli-i0le to +arti%i+ate
in the $7S :e0it s%heme?
Ans 4tility ser!ice pro!iders such as telephone companies$
electricity supplying companies$ electricity boards$ credit card
collections$ collection of loan installments by banks and
#!
%nancial institutions$ and in!estment schemes of =utual
funds$ etc.
#"
Frequently Asked Questions (FAQ) on
$le%troni% Funds Trans#er ($FT) System
Q.1. What is R=(<$FT System?
Ans R"# &'T is a Scheme introduced by Reser!e "ank of #ndia )R"#+
to help banks o@ering their customers money transfer ser!ice
from account to account of any bank branch to any other bank
branch in places where &'T ser!ices are o@ered.
Q.2. At ho! many %entres and 0ank 0ran%hes is the $FT
#a%ility a/aila0le?
Ans The &'T system presently co!ers all the branches of the 2;
public sector banks and 88 scheduled commercial banks at
the 18 centres )!iF.$ Ahmedabad$ "angalore$ "hubneshwar$
Molkata$ handigarh$ hennai$ Guwahati$ 9yderabad$ Caipur$
Manpur$ =umbai$ (agpur$ (ew *elhi$ Gatna and
Thiru!ananthpuram+. 'unds transfer is possible from any
branch of these banks at these centres to other branch of any
bank at these centres both inter:city and intra:city.
Q.'. What is the #unds a/aila0ility s%hedule #or the
0ene1%iary?
Ans The remitting bank transmits the funds transfer message to
R"# so as to reach ($ before the cut o@ time for the
settlement$ the recei!ing bankKs account is credited by R"# at
the destination centre and bene%ciary gets credit on the same
day.
Q.,. o! does the R=( $FT system o+erate?
Ans Ste+<1A The remitter %lls in the &'T Application form gi!ing
the particulars of the bene%ciary )city$ bank$ branch$
bene%ciaryKs name$ account type and account number+ and
2$
authorises the branch to remit a speci%ed amount to the
bene%ciary by raising a debit to the remitterKs account.
Ste+<2A The remitting branch prepares a schedule and sends
the duplicate of the &'T application form to its Ser!ice branch
for &'T data preparation. #f the branch is eBuipped with a
computer system$ data preparation can be done at the branch
le!el in the speci%ed format.
Ste+<'A The Ser!ice branch prepares the &'T data %le by
using a software package supplied by R"# and transmits the
same to the local R"# )(ational learing ell+ to be included
for the settlement.
Ste+<,A The R"# at the remitting centre consolidates the %les
recei!ed from all banks$ sorts the transactions city:wise and
prepares !ouchers for debiting the remitting banks on *ay:1
itself. ity:wise %les are transmitted to the R"# oEces at the
respecti!e destination centres.
Ste+<.A R"# at the destination centre recei!es the %les from
the originating centres$ consolidates them and sorts them
bank:wise. Thereafter$ bank:wise remittance data %les are
transmitted to banks on *ay 1 itself. "ank:wise !ouchers are
prepared for crediting the recei!ing banksK accounts the same
day or ne,t day.
Ste+<3A 7n *ay 1D2 morning the recei!ing banks at the
destination centres process the remittance %les transmitted
by R"# and forward credit reports to the destination branches
for crediting the bene%ciariesK accounts.
Q... o! is this R=( $FT System an im+ro/ement o/er the
e*istin- #a%ilities?
Ans The primary modes of funds transfer at present are demand
draft$ mail transfer and telegraphic transfer. The demand draft
facility is paper based. The remitter$ after purchasing demand
draft from a bank branch$ dispatches the same by post D
2#
courier to the bene%ciary. The bene%ciary$ in turn$ lodges the
draft to his D her bank for collection and clearing. The time
taken for completing the process is about 10 days. #n the case
of telegraphic transfer$ fund reaches the bene%ciary either on
the same day or the ne,tL but both the remitter and the
bene%ciary would ha!e to be account holders of the same
bank. #f they are customers of di@erent banks$ a good deal of
paper processing is reBuired. 7n the other hand$ R"# &'T
system is an inter:bank oriented system. R"# acts as an
intermediary between the remitting bank and the recei!ing
bank and e@ects inter:bank funds transfer. The customers of
banks can reBuest their respecti!e branches to remit funds to
the designated customers irrespecti!e of bank aEliation of the
bene%ciary.
Q.3. Any limit on the amount o# indi/idual transa%tion?
Ans There is no !alue limit for indi!idual transactions.
Q.4. What is the +ro%edure #or a%kno!led-ment? o!
!ould the sendin- 0ran%h kno! that the remitted
amount has 0een %redited to the 0ene1%iary?
Ans The recei!ing branch acknowledges e!ery transaction it
recei!es after crediting the bene%ciaryKs account. The
acknowledgment particulars reach the remitting branch as an
inward message on *ay / of the &'T processing cycle. The
remitting branch will$ therefore$ ha!e precise information as to
when the bene%ciaryKs account was credited.
Q.5. (s it ne%essary #or all 0ran%hes to install %om+uter
system?
Ans (o. #t is not necessary for all branches to ha!e computer
systems. "ranches can send the remittance details to their
ser!ice branch in paper format )the copies of the &'T
Application 'orms submitted by the remitting customers
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accompanied by a Remittance Scroll+. The Ser!ice branch will
make data entry and transmit the funds transfer information
electronically to local (. "ut$ if a branch has computer
facility$ it can transmit funds transfer information
electronically to its ser!ice branch either on a Hoppy or
through a network. This would minimise the data entry work
at the ser!ice branch.
Q.8. What additional or-anisational stru%ture 0anks !ould
0e required to %reate?
Ans &ach participating bank has to identify a branch at the
respecti!e centre to act as the link point for transmitting all
outward messages and recei!ing all inward messages. The
Ser!ice "ranches D =ain "ranches of banks who ha!e been
coordinating the cheBue:clearing work are in the best position
to discharge this role. So no additional organisational
infrastructure is reBuired to be created.
Q.19. What a0out 6ro%essin- %har-es)Ser/i%e %har-es?
Ans <hile R"# has wai!ed its processing charges till =arch /1$
200>$ le!y of ser!ice charges by banks is left to the discretion
of respecti!e banks.
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