Various Banking Services provided in India

REAL TIME GROSS SETTLEMENT ( RTGS )

MEANING
The Term ‘RTGS’ stands for Real Time Gross Settlement, which may be defined as the transfer of funds on Real time( Continuous basis) or at the same time it is being transferred. ‘Real Time’ is referred as the processing of transactions at the time they are done rather than at some later time in future. ‘Gross Settlement’ may be defined as the settlement of funds transfer instructions which occurs individually (on an instruction by instruction basis) considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.

MAXIMUM AND MINIMUM AMOUNT
RTGS system of funds transfer  is basically  meant for large value transactions. The minimum amount to be remitted through RTGS is Rs. 2,00,000. There is no upper limit  fixed for RTGS transactions. Under normal situation the beneficiary branches is expected to receive the funds at the same time they are transferred by the remitting( funds sending bank) bank. The beneficiary bank has to credit beneficiary’s account( Receiver of funds) within two hours of receiving the funds transfer message.

TIMING OF RTGS TRANSFER
The RTGS service window for customer’s transactions is available to banks from 9.00 hours to 16.30 hours on week days and from 9.00 hours to 14:00 hours on Saturdays for settlement at the RBI end. However, the timings that the banks follow may vary depending on the customer timings of the bank branches.

INFORMATION REQUIRED FOR DOING RTGS TRANSACTIONS
The customer who is transferring money (Remitter) has to mention some information to the bank for doing RTGS transfer. The informations which is needed for RTGS funds transfer are listed below:

1). The amount to be transferred
2). Remitter( funds Sender’s) account number
3). Name of the beneficiary bank ( Receiver of funds Bank name)
4). Name of the beneficiary customer (person who is to receive money)
5). Account number of the beneficiary customer  (person who is to receive money)
6). Sender to receiver information, if any7). The IFSC Number of the receiving branch of the bank.

PROCESSING TIME
Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary’s account within 30 minutes of receiving the funds transfer message.

NATIONAL ELECTRONIC FUNDS TRANSFER ( NEFT )
MEANING
National Electronic Funds Transfer (NEFT) may be defined as a world wide system that let  individuals, firms and corporates to electronically transfer their funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country.

MAXIMUM AND MINIMUM AMOUNT
There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances within India and also for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.

TIMING OF NEFT TRANSFER
Presently, NEFT operates in hourly batches – there are twelve settlements from 8 am to 7 pm on week days (Monday through Friday) and six settlements from 8 am to 1 pm on Saturdays.

INFORMATIONS REQUIRED TO DO NEFT FUNDS TRANSFER

1).   The amount to be transferred
2).   Remitter( funds Sender’s) account number
3).   Name of the beneficiary bank ( Receiver of funds Bank name)
4).   Name of the beneficiary customer (person who is to receive money)
5).   Account number of the beneficiary customer  (person who is to receive money)
6).   Sender to receiver information, if any
7).   The IFSC Number of the receiving branch of the bank.

PROCESSING TIME
The beneficiary can expect to get credit for the NEFT transactions within two business hours (currently NEFT business hours is from morning 8 AM to evening 7 PM on all week days and from morning 8 AM to afternoon 1 PM on Saturdays) from the batch in which the transaction was settled.

Note**  The charges for NEFT and RTGS services depends upon the amount you are transferring and the policies of the bank which varies from bank to bank.

SMS ALERTS
This kind of service is provided by mainly each bank whether its Nationalised or private Bank. The bank charges a very small amount for providing this service.Presently India’s Largest Bank SBI charge Rs.15 in every three months but its not same with other Bank. In order to become eligible for this service one need to register his mobile number with bank. After successful mobile number  registration the bank starts sending SMS alert on every deposit, withdrawal made by the account holder. The Bank also send OTP Number on the registered mobile number while doing transactions with debit or credit card. This service is very beneficial as it help to track each and every transactions made by account holder. Even for security purpose this service is very good as in case of fraud i,e money withdrawn from account, the bank sends SMS alerts immediately and the account holder can immediately take actions after receiving the SMS alert.

ELECTRONIC-BANKING (E-BANKING)
MEANING
E-Banking may be defined as a system where any Bank account holder can easily do all his banking transactions with the help of internet. E-Banking  is also known as Internet Banking. This concept has been introduced by all the Commercial Banks in our country. It help the customers in many ways such as it help them in reducing their precious time wasted visting the bank to do transactions. People can easily transfer money from one bank account to another just by filling up a sort of Online form. Besides this the account holder also gets an opportunity to pay online for services or goods. The account holder can check out their account transactions for a given period at any time he wishes to see.

FEATURES OF E-BANKING
The common features can be divided into following five categories:

  1. Payments to third parties, including bill payments and telegraphic/wire transfers
  2. ‘ Funds transfers between a customer’s own transactional account and his savings accounts.Purchase or sale of Investment. Loan applications and transactions, such as repayments of enrollments.
  3. Non-transactional : (Online statements, cheque links, cobrowsing, chat) Viewing recent transactions of the customer. Downloading bank statements,mini statement,
  4. Viewing images of paid cheques. Financial Injtution Administration
  5. Management of multiple users having varying levels of authority
    Transaction approval process
  6. Features commonly unique to Internet banking include

PERSONAL E-BANKING
Personal E-banking provides a wide advantageous variety of convenient online banking services which are as follows:

  1. It facilitates the customer by allowing to check the account balance at any pojptf time.
  2. It help us to pay any online bill
  3. It provides a summary of the interest and other charges (by account) for the financial year.
  4. Personal E-Banking helps to transfer funds from one account to another account.
  5. It helps to provide telegraphic transfer.
  6. We can easily order a statement.
  7. We can also order a cheque book without going to the bank.
  8. The bank account holder gets to know the new offer and schemes as and when introduced by the bank.

BANK DRAFT
Bank draft may be defined as a type of cheque where the payments is guaranteed to be available by issuing bank after it is being presented. It is drawn by the bank either on its own branch or on another bank. Bank Draft is said to be very convenient , cheap and safe method of transferring money from one particular place to another. Bank draft is considered to be safe in nature because there is no risk of its being dishonoured. In order to transfer money through a Bank draft, a person is first required to fill up the prescribed form or generally called Demand draft slip which is available in bank and then pay the prescribed amount along with commission. The Bank then handover the draft to the person. The person then sends it to the receiver who may be a person, a school or any sort of institution. The receiver after receiving the same deposits it in his own bank. The bank then collect the payment from the concerned bank and finally credits the customer/receiver account.

BANKER’S CHEQUE OR PAY ORDER
Pay order may be defined as an instrument that a banker issues after receiving funds from customer. Thus, the payee is assured of receiving the funds on presenting the Pay order Pay order is also known as banker’s cheque because it is issued by a bank and payable locally only ( in the same city where it is drawn). It is to be noted that bank cannot issue a pay order to a customer who is out side of our city. Only Demand draft can be issued across the city. Also Pay Order cannot be issued against cash Rs 50,000, and Pay Order above Rs.50,000 can be issued through account only.

Procedure for issuing Banker Cheque or Pay Order are:

  1. Filling up and signing the requisition slip.
  2. Paying amount to the counter
  3. Cashier will scrutinize our request
  4. He/she will enter transaction in their system by debiting cash in case we are paying cash and our account in case we are giving a cheque.
  5. Next step is printing the Pay Order.
  6. Printed Pay order will be sent to Customer Service Manager along with requisition slip. The Manager will sign after verification.
  7. Two authorities should sign in case of Pay Order above Rs.25,000.Thanks for reading the article……….

 

ROHIT

This website is all about tech and banking tutorials in simple languages so that one can easily get their doubt solved easily

Leave a Reply

Your email address will not be published. Required fields are marked *