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1. RTGS NAVITAS Amit , Dhananjay , Kushal , R.D.B, Sarat Chandra, Pradyumna Real Time Gross Settlement

2. RTGS- Real Time Gross Settlement Introduced in India since March 2004 Electronic instructions given by remitting banks to transfer funds to beneficiary bank. Maintained and operated by RBI Provides fast and efficient fund transfer RTGS

3. Funds transfer between banks takes place on a ‘ Real time’ basis i.e., , money reaches the beneficiary instantaneously Beneficiary bank has to credit the amount within two hours 'Gross settlement ' means the transaction is settled on one to one basis No bunching RTGS - MEANING

4. RTGS vs. NEFT RTGS No bunching and continuous throughout RTGS business hours Minimum Amount is 2 lakh No upper ceiling Mainly used by firms NEFT B unching and dis-continuous during NEFT business hours Max. Amount is 50,000 Upper ceiling is there Individuals,firms or corporate

5. RTGS platform contains: CBS – Core Banking System of participants banks PI – Participant Interface IFTP – Inter-Bank Fund Transfer Processor RTGS – RTGS system at the RBI RTGS Account – RTGS Current Account with RBI Un-Cleared funds Account Maintained with Deposit Accounts Department, RBI , Mumbai RTGS PLATFORM

6. STRUCTURE OF RTGS PLATFORM CBS A CBS B P I P I IFTP RTGS RBI

7. Customer’s instruction are checked by the remitting bank(ACCOUNT NO. & IFSC CODE MANDATORY) Debit customer account and transmit details to the PI with priority. Transmit message from PI to IFTP at RBI IFTP system transmits details from remitting bank to the beneficiary bank to RTGS system Process Flow

8. RTGS queues up transaction based on priority and serial number RTGS system transmits the status of transaction to the IFTP again Successful transaction are send from IFTP to beneficiary bank PI PI to the CBS branch and beneficiary account credited FLOW contd …

9. Remitting bank has option to prioritize. High value remittance are given high priority Priority to be assigned by PI and mandatory Settled on FIFO basis Priority from 01-99 (01-10 used by RBI) Each transaction has a default priority. If PI does not prioritize then IFTP does it Avoids delays in important transactions PRIORITY

10. Queuing: Transaction based on priority Can be changed by the remitting bank or IFTP Gridlock: Settling the amount in periodic timing Can only used by the RBI PAYMENT MECHANISM

11. Returned to remitting bank by beneficiary bank via RTGS system within 2 hours or end of RTGS day If the recipient bank does not credit the of the customer the following charges are applicable Beneficiary member: current repo rate Originating member: 2% above repo rate Return payment send as fresh inter-bank payment REPAYMENTS

12. If the funds are returned then the amount goes to the Un-cleared funds account Any funds not cleared will be in Un-cleared funds account These funds remains in the account until the last clearing instruction After all settlement the funds will be transferred to the settlement account UN-CLEARED FUNDS

13. No cancellation possible when message is sent to IFTP Special provisions available before settlement When RBI desires When banks does it before the settlement By RTGS system with validation Re-Prioritization: Only banks can change within the priority range CANCELLATION

14. Credit and debit of settlement account may arise in shortfall RBI gives Intra Day Liquidity(IDL) Through Repo against government securities IDL used based on priority generated by RTGS system No interest charged by RBI but securities should be brought before 1.5 hours of next RTGS start- of- day INTRA DAY LIQUIDITY

15. Amount stipulation Minimum : 2 lakh Maximum : No upper ceiling Through Net Banking : 10 lakh Timing (called RTGS business hours): 9.00 hrs to 16.30 hrs on week days 9.00 hrs to 13.30 hrs on Saturday Through Net Banking 24 x 7 FEATURES

16. Electronic Funds Transfer Infrastructure in India – Usage of RTGS Customer Charges RTGS Existing Revised 1 lakh to 2 lakhs 25 - above 2 lakhs to 5 lakhs 25 25 above 5 lakhs 50 50

17. Thank You