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RTGS in banking means fund transfer from one bank branch to another bank branch in real time with gross settlement.Real Time Gross Settlement is the full form for the RTGS?
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What does RTGS means?
It refers to Real Time Gross Settlement It is a service offered by the Reserve Bank of India to process high value cash transactions safely between two accounts.
What are the drawbacks of the RTGS?
drawbacks of rtgs
Is there anything such as RTGS code?
RTGS means Real Time Gross Settlement
What is the full form of RTGS in Banking Sector?
The full form of RTGS is real time gross settlement.
What do you understand by the term RTGS?
RTGS stands for Real time Gross Sattlement and is used for online transaction of money through various banks.
Form of rtgs in union bank of India?
please give the detials of rtgs form
How do you download rtgs application form State bank of India?
Through PDF
Rtg code of icici bank at kandiveli mumbai?
IFSC-RTGS and NEFT Codes of any bank can be located in their respective Bank Sites.
What does RTGS means?
It refers to Real Time Gross Settlement It is a service offered by the Reserve Bank of India to process high value cash transactions safely between two accounts.
In bank process what is meant by NEFT?
National electronic funds transfer.......
Is compulsary to have bank acceptance before transfer of funds from rtgs?
If you are asking about acceptance from the receiver - then No. You only need to confirm with your own bank where you maintain the account, enter details of the receiver and initiate the RTGS transfer. The money will reach the intended party the same day
What are the drawbacks of the RTGS?
drawbacks of rtgs
Full form of RTGS?
RTGS
Is RTGS permissible between branches of different banks and Can you transact funds from PNB to Dena bank if both the branches are RTGS enabled?
RTGS stands for Real Time Gross Settlement. It is an electronic funds transfer facility available for banking customers in India which can be used to move funds from one account to another. It is used for high value transactions (Usually atleast a few lacs) and the money is usually received the same business day by the target party. It can be initiated between all banks in India as long as they are registered with RTGS. Both PNB and Dena bank are registered banks with respect to RTGS and you can do it.
Is there anything such as RTGS code?
RTGS means Real Time Gross Settlement
What is RTGS payment?
What is RTGS?RTGS stands for Real Time Gross Settlement. RTGS is the fastest money transferringmechanism between the banks. In RTGS, the transactions are processed and settledin "Real time" and on "Gross" bases. Once the transaction is settled, it is irreversible."Real time" means as and when the transaction is processed. There is no waitingtime."Gross" means the transaction is settled individually without being clubbed withother transactions.Net Settlement Mechanism:A well known alternative settlement mechanism is Net Settlement. In Net settlementmechanism, the transactions are received and processed as and when it arrives.However settlement happens in a batch process, typically at the end of the day. Thebatch contains list of transactions that are net amount to be transacted betweenbanks. In some countries the batch may be submitted more than once in a day.Goals of RTGSThe goals of RTGS are1. To reduce settlement risk due to settlement lag2. To reduce credit risk3. Speed up the process of high value payments4. To give accurate position of the participating bankRTGS & Core Banking SystemThe RTGS does not require the participating banks to have core banking system inplace. The core banking system of banks is used to record transactions of itscustomers in the banks books whereas the RTGS transactions happen forparticipating banks in the books of Central Bank.The participating banks can access RTGS system through the means provided by thecentral bank. The common interfaces provided for RTGS system are ParticipantInterface (PI) or Web Interface (WI).Participant InterfaceThe Participant Interface is thin application that is installed in the commercial banks.The user can enter transactions in PI which submits it to the RTGS system in centralbank through communication network. All error messages and notifications includingthe settlement notification will be received by PI.Web InterfaceWith the advent of technology the latest RTGS implementations are normallyprovided with the Web Interface. The WI is user friendly and there is no need toinstall any separate software. Web browsers like Internet Explorer and Firefox can beused to submit transactions to the RTGS system. All error messages and notificationsincluding the settlement notification will be received by WI.Straight Through Processing (STP)If the participating bank has core banking system then it can be interfaced with theRTGS through connecting mechanism called Straight Through Processing (STP). STPis defined as that the payment transactions are keyed in only once and processeduntil settlement. For an STP, payment transactions can come from core bankingsystem, trading system or any other system. The transaction request message willbe automatically routed to RTGS system and the response received from RTGS willbe processed and sent to the appropriate system that raised the transaction request.STP is very useful when there are many RTGS transactions to be submitted andmanual entry of each transaction is difficult.SecurityThe transactions that are submitted to RTGS are safe, secure and reliable. TheCentral Bank takes due diligence in the matter of security of RTGS system andaddress all the issues like authenticity, duplication and non-repudiation. It does notmatter what type of interface participant banks use to submit transaction to RTGS,the security is always ensured.LiquidityIn the Net settlement system the participating banks are to pay only the netdifference of debit and credit where as in RTGS each transaction is effectedindividually. Because of this nature RTGS demands more liquidity to be available with the participating banks.For example, say Yes-Bank is to pay No-Bank amount of 100,000 SDG and No-Bank is to pay Yes-Bank amount of 75,000 SDG. In Net Settlement System, the two transactions would be netted and one transaction from Yes-Bank to No-Bank for the amount of 25,000 SDG would be effected. Hence the total liquidity in the system needed for settling these two transactions is 25,000 SDG. On accounting entry perspective, there will be one debit and one credit entry for the amount of 25,000 SDG.In RTGS, the mentioned two transactions would be settled as individual transactions, so two transactions, one for 100,000 SDG and another for 75,000 SDG will be effected. Hence the total liquidity in the system needed is 175,000 SDG. Though RTGS system has many advantages, the high liquidity need is a drawback of it. This is mainly due to the asynchronous nature of the payments. However, Central Banks provide additional liquidity needed by RTGS to the commercial banks. Also this additional liquidity is inbuilt in the RTGS system and takes place automatically when a commercial bank is in need of liquidity. The following are the facility by which liquidity problem is sorted out.Intraday RepoThe repo transaction is selling of security from one bank to another bank or central bank with the agreement to repurchase it later. Incase the repurchase cannot be done as per the agreement; the sale can become a permanent trade. This is the liquidity mechanism to be used in the Sudan's RTGS system.Settlement QueuesThere are queuing mechanisms available in RTGS. In this mechanism, the transactions that cannot be settled due to lack of funds will be kept and retried later when the funds arrive. By this mechanism, the rejection of transactions due to lack of funds will be avoided.Gridlock MechanismWhen there are multiple transactions to be settled and each transactions wait foranother transaction to settle, the situation is called gridlock. In gridlock situation no transaction settles and waits indefinitely for other transaction to settle. RTGS has gridlock solving algorithms which will consolidate those transactions and settle it as a group. The gridlock program can be scheduled to run automatically or my by manual trigger.Transaction ValueUnlike Net settlement system which generally process transactions of any amount,RTGS only works the high value transactions. Numerous studies have shown that fewnumber of transactions accounts for high value of transaction settled per day. Forexample, say 100 transactions have the total value of 1M SDG, where as 900transactions amounts for only 0.5M SDG. RTGS system is designed mainly to focuson the 100 high value transactions.RTGS will replace any high value clearing systems that are in practice. However, itwill not replace Net Settlement System because Net Settlement System is stillneeded to process the high number of low value transactions. After theimplementation of RTGS, Net Settlement System will be able to submit more thanone batch per day.
Name of State Bank of India branch having Real Time Gross clearance service at?
All Bank Branches of State Bank of India are now enabled for RTGS(Real Time Gross Settlement) Transactions.
