REAL TIME GROSS SETTLEMENT

(RTGS)
Presented By: Md. Mehedi Hasan, Janata Bank Ltd

RTS/X

DEFINITION OF REAL TIME GROSS SETTLEMENT

(RTGS):
The acronym 'RTGS' stands for Real Time Gross Settlement, which can be defined
as the continuous (real-time) settlement of funds transfers individually on an order
by order basis (without netting).
'Real Time' means the processing of instructions at the time they are received
rather than at some later time.

'Gross Settlement' means the settlement of funds transfer instructions occurs

individually (on an instruction by instruction basis).
RTS/X
Presented By: Md. Mehedi Hasan, Janata Bank Ltd

RTGS BUSINESS HOURS:

RTGS transactions are processed continuously throughout the RTGS business
hours.
The RTGS service window for customer's transactions is available from 10.00
hours to 16.00 hours on week days
The timings that the banks follow may vary depending on the customer timings
of the bank branches.

RTS/X

Presented By: Md. Mehedi Hasan, Janata Bank Ltd

FUNDS TRANSFER THROUGH RTGS

SYSTEM:
Banks for offering funds transfer through RTGS system, a broad framework has
been mandated as under:
a) Inward transactions .

b) Outward transactions .

Presented By: Md. Mehedi Hasan, Janata Bank Ltd

RTS/X

RTGS REMITTANCE:
The remitting customer has to furnish the following information to a bank for
effecting a RTGS remittance:
Amount to be remitted

Remitting customers account number which is to be debited

Name of the beneficiary bank
Name of the beneficiary customer
Account number of the beneficiary customer

Sender to receiver information, if any

The IFSC Number of the receiving branch
RTS/X

Presented By: Md. Mehedi Hasan, Janata Bank Ltd

BENEFITS OF REAL TIME GROSS SETTLEMENT (RTGS)

SYSTEM
Some of the benefits of such system are:
Faster clearing cycle
Better reconciliation/ verification process

Better Customer Service, Enhanced Customer Window

Elimination of Float. Incentive to shift to Credit Push payments
The jurisdiction of Clearing House can be extended to the entire country. No Geographical
Dependence
Operational Efficiency will benefit the bottom lines of banks

Minimizes Transaction Costs

Reduces operational risk by securing the transmission route
Presented By: Md. Mehedi Hasan, Janata Bank Ltd

RTS/X

BACH VS. RTGS

.

The project BACH is divided into two parts:

i) BACPS (Bangladesh Automated Cheque Processing Systems) and
ii) BEFTN (Bangladesh Electronic Funds Transfer Network)

RTGS payments are final and irrevocable.

The RTGS system is primarily meant for large value transactions.
The beneficiary bank has to credit the beneficiary's account within two hours of receiving the funds
transfer message .
Any transaction initiated after a designated settlement time would have to wait till the next designated
settlement time Contrary to this, in the RTGS transactions are processed continuously throughout the
RTGS business hours
RTS/X
Presented By: Md. Mehedi Hasan, Janata Bank Ltd

Thank You All