Important Key Points About RTGS for Banking Exams

"REAL TIME GROSS SETTLEMENT (RTGS)"

For SBI PO-RRBs-IBPS PO/ Clerk

Introduction:

RTGS is a centralized payment system in which, interbank payment instructions are processed and settled, on gross basis in a real time environment. It uses INFINET and SFMS platforms. In India, RTGS was implemented on 26^th March, 2004. RBI operationalised the new RTGS system on 19^th October, 2013. It is regulated as per RTGS system Regulation Act, 2013.

Management:

It is operated by RBI and managed by a Standing Committee consisting of members from RBI, banks and other stakeholders.

Membership:

• Open to all banks or institutions.
• Criteria for Membership: The entity has to comply with other specific requirement such as –
• Membership of the Indian Financial Network (INFINET)/Domestic SWIFT network/ SFMS
• Current account, settlement account and Subsidiary General Ledger account with RBI.

 Type of Membership:

• RBI
• Restricted participants such as primary dealers
• Regular participants such as banks and
• Clearing House (permitted to submit MNSB file to RTGS system).

RTGS Transaction Type:

• Return Payment Transaction
• Government Transaction
• Own Account Transfer (OAT)
• Customer Transaction
• Delivery versus Transfer (DVT)
• Inter-Institutional/ Inter-RBI Transaction;

Minimum/ Maximum amount Stipulated for RTGS Transactions:

RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is 2lakh. There is no upper ceiling for RTGS transactions.

RTGS Remittance:

• The remitting customer has to furnish the following information to a bank for initiating a RTGS remittance –
• Remitting customer’s account number which is to be debited
• The IFSC Number of the receiving branch
• Amount to be remitted
• Name of the beneficiary bank and branch
• Name of the beneficiary customer
• Account number of the beneficiary customer
• *Sender to receiver information (if any) 

Outward Transaction under RTGS:

• Rs. 2lakh to Rs. 5lakh (not exceeding Rs. 30 per transaction)
• Above Rs. 5lakh (not exceeding Rs. 55 per transaction)