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March 2007 Issue– 24
Topic: Real Time Gross Settlement
Introduction
Development of payment and
settlement systems conforming to the best international standards has been a
key objective of RBI. This was achieved
in 2003-04 by the commencement of RTGS , a facility available for quick, safe
and secured electronic mode of funds transfer. With commencement of RTGS,
Features
of RTGS
RTGS is a system through which the
electronic instruction can be given by banks to transfer funds from their
account to the account of another bank. This is an electronic payment
processing environment where payment instructions are processed on a real time
basis and settlement is done on a gross or individual basis without netting. The
RTGS system is maintained and operated by RBI and it provides a mean of
efficient and faster funds transfer among banks facilitating their financial
operations.
Salient features of RTGS are
It is a fully secured system which uses digital signatures
and PKI based encryption for safe and secure message transmission.
RTGS system comprises of RTGS
applications, inter bank funds transfer process (IFTP) application and RTGS
member (participant) interface application. RBI has provided participant
interface application to all Type A and Type B members of RTGS system.
Members
of RTGS
Banking and financial sector
entities on being granted with RTGS membership will be assigned with a
membership type.
Type A – All scheduled banks
including scheduled cooperative banks. Type A members are eligible for all
types RTGS transactions including customer transactions.
Type B – All the primary dealers
can get Type B membership. They are also eligible for doing all types of RTGS
transactions.
Type C – A bank or a primary dealer
operating in a call money market and maintaining current account in the Deposit
Account Department of RBI are eligible for ‘C’ type membership. They can avail RTGS facility only through a
sponsor bank.
Type D – All clearing entities
taking care of net settlement clearing will be eligible for type ‘D’
membership.
RTGS in
‘Indian Bank’
Our bank has joined RTGS from
24.06.2004 . At that time we were using SFMS (structured financial messaging
system) for doing RTGS transactions. Now RTGS is enabled under CBS. All our CBS branches are RTGS enabled and
they can do RTGS transactions. Under CBS
there are two types of RTGS messages available.
1)
R 41 – Customer based RTGS message
2)
R 42 – Inter Bank message
To send customer based RTGS message
the following details are required.
1)
Beneficiary’s account number
2)
Beneficiary’s Name and address
3)
Indian Financial system code (IFSC) of the beneficiary
branch
4)
Amount of transaction should be above Rs.1.00 lac
IFSC code is a code given to all
the RTGS members by RBI and our CBS
system provides a search to find out the IFSC code of all the RTGS enabled bank
branches.
RTGS
Business hours.
Customer related transactions can
be done from
Status of RTGS messages
1)
Remitted – Transactions successfully completed and waiting
for settlement.
2)
Settled – Funds received at the destination bank branch.
3)
Cancelled – Message has been rejected by RBI due to receipt
of messages after business hours.
4)
Returned unpaid – Outward message has been returned by the
beneficiary and will come back as and inter bank message (R42)
5)
Funds received – Credit has been received for inter bank
message.
In case of inward RTGS messages for
credit of our bank account, the sender has to mention the correct 9 digit
account number of the beneficiary (our customer) In case the correct account
number is not mentioned ( Instead of new account no some times sender will be
giving the old account no) the message will be routed to our Mumbai Fort branch
by CDC and the beneficiary branch will have to contact Mumbai Fort branch and get
the credit advice from them.
for Growth & Excellence
MRC Nagar, R A Puram,
Chennai 600 028
e-mail: image@indianbank.co.in
Website: www.indian-bank