RTGS Transactions
The volume of RTGS transactions is increasing rapidly. RTGS settled 1.94 million transactions in the month of March 2009 as against 0.72 million transactions in March 2008. Customer transactions settling in RTGS presently constitute 89 percent of total RTGS transactions and are growing. At a recent meeting with major banks, RBI reviewed the entire gamut of RTGS customer transactions with a view to making them more user friendly.
RBI has advised that
a) A bank customer receiving RTGS credit shall be provided with the name of the remitter in his account statements/pass book.
b) A bank customer sending a RTGS remittance shall be provided with the name of the beneficiary in his account statements/pass book.
The banks are free to provide any additional information as they deem necessary/useful.
What is RTGS? “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. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable.