Unit 3 BANKING SERVICES II
RTGS:
RTGS stands for Real Time Gross Settlement. It is a funds transfer system where the transfer
of money or securities takes place from one bank to any other bank on a "real-time" and on a
"gross" basis.
Real-time means the settlement of funds takes place as soon as the instruction is received and
processed.
Gross means that each transaction is settled individually, without any offsetting of debits and
credits.
RTGS is typically used for high-value and time-critical transactions, such as:
Interbank transfers
Large business payments
Securities settlements
Government transactions
To make an RTGS transfer, you will need to provide the following information:
Your bank account details
The beneficiary's bank account details
The amount to be transferred
The IFSC code of the beneficiary's bank
You can make an RTGS transfer through your bank's online banking portal, mobile
banking app, or by visiting a bank branch.
RTGS processing charges
RTGS processing charges vary from bank to bank. However, the Reserve Bank of
India (RBI) has set a maximum cap on RTGS processing charges.
RTGS timings
RTGS is available 24x7x365 in India.
RTGS minimum and maximum amount
The minimum amount for an RTGS transfer is ₹2,00,000. There is no upper limit on
the amount that can be transferred through RTGS.
NEFT :
NEFT stands for National Electronic Funds Transfer. It is an electronic funds transfer
system maintained by the Reserve Bank of India (RBI). NEFT enables bank
customers in India to transfer funds between any two NEFT-enabled bank accounts on
a one-to-one basis.
NEFT is a fast and secure mode of electronic money transfer. It takes about 1 hour for
the banks to process NEFT transactions. NEFT transactions are processed in batches
throughout the day, from 8 AM to 7 PM on weekdays and 9 AM to 12 PM on
Saturdays.
NEFT can be used to transfer money for a variety of purposes, such as:
Paying bills
Transferring money to family and friends
Making salary payments
Making payments to suppliers and vendors
Transferring money to investment accounts
To make an NEFT transaction, you will need to provide the following information:
Your bank account details
The beneficiary's bank account details
The amount to be transferred
The IFSC code of the beneficiary's bank
You can make an NEFT transfer through your bank's online banking portal, mobile
banking app, or by visiting a bank branch.
NEFT processing charges vary from bank to bank. Here are some of the benefits of
using NEFT:
It is a fast and convenient way to transfer money electronically.
It is a safe and secure mode of money transfer.
It is relatively inexpensive to use NEFT.
NEFT can be used to transfer money to any NEFT-enabled bank account in India.
Overall, NEFT is a convenient and efficient way to transfer money electronically in
India.
IMPS:
1. IMPS (Immediate Payment System):
Description: IMPS is a service provided by the bank for quick electronic funds
transfer through mobile phones.
Registration: Customers need to register with the IMPS service of the bank to use this
feature.
Convenience: It is a convenient and quick method for fund transfers using mobile
devices.
Usage: Accounts can be accessed using mobile phones, making it easy for users.
2. Electronic Clearing Service (ECS):
Description: ECS is a service designed for periodic and repetitive transactions, such
as utility bill payments (e.g., telephone bills, electricity).
Example Usage: Ideal for paying regular bills like telephone and electricity on a
recurring basis.
Mode of Transactions: It involves electronic clearing of funds for routine payments.
Applicability: Suited for transactions that occur regularly and predictably. It is quicker
method as compared to physical transfer of cash.
DEBIT AND CREDIT CARDS
A debit card is a cashless route of making payment. It debits money from a customer's
account directly when it is used. It may be used to buy products and services and to
make payments or for cash withdrawing form ATMs. Unlike credit cards the customer
cannot use more than what is available in their account. So, that limitation is there and
is an advantage or disadvantage as per the view of the customer.
To use these unlike credit cards, the user does not have to pay any fees or charge.
Credit Cards on the other hand are cards used for payment like debit cards, but the user
has to promise the card issuing authorities that payment and other charges levied will
be processed.
The card issuing authority gives a line of credit to the card user through which the
payment can be made for purchase of products and services. The issuing authorities
also enter into agreements with sellers to accept these cards as mode of payment.
Through electronic verification the seller can verify that the card is valid and acceptable
as a mode of payment
2.6 HANDLING BANKING COMPLAINTS
If any customer is not satisfied with any service of the bank, a complaint can be filed on
plain paper or on the portal. For this the banking Ombudsman needs to be contacted. The
complaint should have the contact details of the complainant. and the bank, facts as per the
complainant, loss if any suffered, and if any relief is required. This needs to be done only
when the bank has rejected the complaint or has not responded to the complaint, or if the
complaint is not satisfied by the bank's response or there is a delay as specified by the RBI.
In this case the complainant or an authorized representative can contact the Ombudsman
Customers can contact the Digital Complaint Management System Portal for any banking,
NBFC or even digital related issues.
App based payment system:
The emergence of app-based payment systems has transformed how consumers make
transactions. When using such apps, your card information is securely transmitted to a
payment gateway, initiating a chain that involves communication with the card-issuing bank
and the payment system, like MasterCard or VISA. The process includes reputation analysis,
adherence to terms and conditions, and ultimately, the generation of an authorization code to
finalize the payment. If everything aligns, the funds are then transferred to the seller's bank
account.