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REAL TIME GROSS SETTLEMENT (RTGS) --important points briefly --for sbi clerical/po/ibps po/clerical

REAL TIME GROSS SETTLEMENT (RTGS)

1. In RTGS, transmission, processing and settlement of the financial transactions, is done simultaneously.

2. It was implemented in India : 26.03.2004 by RBI.

3. On RTGS, the settlement is on a gross basis (i.e. separate for each transaction instead of on net basis in Net Deffered Settlement system)

4. Settlement is continuously (on line, on real time basis) rather than on batch system, which happens in NEFT.

5. RBI is the settlement authority and IRDBT (Institute of Reasearch and Development in Banking
Technologies), as central processing agent.

6. Message flow model adopted in India - Y shaped Model out of the 4 available models (namely T, L, V, Y)

7. Risk taken care of through RTGS - Systemic risk and settlement risk.

8. Settlement cycle - Max 2 hourly (presently).


9. Transaction Time :
(a) Customer transactions 9 am to 4.30 pm normal days and up to 13.30 on Saturday.
(b) Bank transaction: 9 am to 6.00 pm normal days and up to 15.00 on Saturday.

10. Amount eligible for Transactions : Rs.2 lac or above.

11. RTGS uses an Indian Financial System (IFS) code - an Alpha numeric code that identifies the bank branches. It has 11 digits- 1st 4 represent bank code, 5th reserved as control code (presently 0) and remaining 6 are branch code (last 4 SOL code).

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