Prepared by:

PANKAJ KUMAR
AICAR BUSINESS SCHOOL
EMAIL ID : pankajku2020@gmail.com
 WHAT IS INTER BANK TRANSFER?
Inter Bank Transfer is a special service that allows you to transfer funds electronically
to accounts in other banks in India through:

o NEFT - The acronym “NEFT” stands for National Electronic Funds Transfer. Funds
are transferred to the credit account with the other participating Bank using RBI's
NEFT service. RBI acts as the service provider and transfers the credit to the other
bank's account.

o RTGS –The acronym “RTGS” stands for Real Time Gross Settlement. The RTGS
system facilitates transfer of funds from accounts in one bank to another on a
“real time” and on “gross settlement” basis. The RTGS system is the fastest
possible inter bank money transfer facility available through secure banking
channels in India. 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.
 HOW RTGS IS DIFFERENT FROM NEFT?
NEFT RTGS

NEFT are electronic fund transfer In RTGS, transactions are

modes that operate on a deferred processed continuously throughout
net settlement (DNS) basis which the RTGS business hours.
settles transactions in batches. In
DNS, the settlement takes place at a
particular point of time. All
transactions are held up till that
time.
 RETAIL INTERNET BANKING
Minimum Maximum
RTGS Rs. 1 Lakh Rs. 1 Lakh

NEFT No Limit Rs. 1 Lakh

 CORPORATE INTERNET BANKING
Minimum Maximum
RTGS Rs. 1 Lakh No Limit

NEFT No Limit No Limit

 INTERNET BANKING HOURS
RTGS
Day Start Time End Time
Monday to Friday 9:00 hrs 16:00 hrs

Saturday 9:00 hrs 12:00 hrs

NEFT
Day Start Time End Time
Monday to Friday 8:00 hrs 16:00 hrs

Saturday 8:00 hrs 11:30 hrs

NEFT transactions are settled in batches based on the following timings:

• 6 settlements on weekdays - at 09:00, 11:00, 12:00, 13:00, 15:00 and 17:00 hrs.
• 3 settlements on Saturdays - at 09:00, 11:00 and 12:00 hrs.
 MANDATORY INFORMATION
The Remitter has to provide the following details:
o Amount to be remitted

o Account number which is to be debited

o Name of the beneficiary bank

o Name of the beneficiary

o Account number of the beneficiary

o Remarks or description, if any

o The IFSC code of the beneficiary branch

 RBI EFT SYSTEM
Step 1 : Filling EFT Application

Step 2 : Preparing Schedule & send application to service branch

Step 3 : Prepares EFT data file and transmit the same to the local RBI for settlement

Step 4 : RBI at remitting centre consolidates the files received from all banks, sort
them city wise and prepares vouchers for debiting the remitting bank on Day-
1 itself

Step 5 : RBI at the destination centre receives the files from the originating centres,
consolidates them and sorts them bank-wise. Thereafter, bank-wise
remittance data files are transmitted to banks on Day 1 itself. Bank-wise
vouchers are prepared for crediting the receiving banks’ accounts the same
day or next day

Step 6 : On Day 1/2 morning the receiving banks at the destination centres process
the remittance files transmitted by RBI and forward credit reports to the
destination branches for crediting the beneficiaries’ accounts.
 PROCESSING CHARGES/SERVICE CHARGES

While RBI has waived its processing charges for all electronic payment
products till March 31, 2008, levy of service charges by banks is left to the
discretion of the respective banks.

Amount Service Charge

NEFT Upto Rs. 1 Lakh Rs. 5

Rs. 1 Lakh & above Rs. 25

RTGS Upto Rs. 5 Lakh Rs. 25

Rs. 5 Lakh & above Rs. 50

 TRACKING OF TRANSACTIONS
o It would depend on the arrangement between the remitting customer
and the remitting bank.

o Some banks with internet banking facility provide this service.

o Once the funds are credited to the account of the beneficiary bank,
the remitting customer gets a confirmation from his bank either by an
e-mail or by a short message on the mobile.
WHOM DO I CAN CONTACT IN CASE OF NON CREDIT OR DELAY IN CREDIT TO ACCOUNT

Contact your bank / branch. If the issue is not resolved satisfactorily, the
Customer Service Department of RBI may be contacted at :–

The Chief General Manager,

Reserve Bank of India,
Customer Service Department,
1st Floor, Amar Building, Fort,
Mumbai-400001
 VOLUME AND VALUE OF TRANSACTIONS

On a typical day, RTGS handles about 14000

transactions a day for an approximate value of
Rs.1,50,000 crore.
Source : RBI