Common Myths about RTGS and NEFT Transfers
One of the cool things RBI has done in the last few years is introducing Online Funds Transfers which are of 2 types.
(1) RTGS: Real Time Gross Settlement which require a minimum transaction amount of Rs. 100,000 (transfer happens within 2 hours usually into the destination account)
(2) NEFT: National Electronic Funds Transfers which can be of any amount (transfers happen in 3 cycles of 10 AM, 2:00 PM and 4:00 PM or some similar time)
I am not dwelling too much on the technicalities of the process. What I want to highlight is the convenience of this process and the security aspects related to the same. The objective is to get more and more people (especially the younger crowd who are always short of time) to use this for funds transfers instead of cutting out cheques.
Security Aspects
(1) You will need to register for Internet Banking to effect RTGS and NEFT Transfers online
(2) Your Bank should have a Payee List (to whom you can make RTGS and NEFT payments) with a separate Payee Registration process.
(3) I have a Citibank Account whenever, I need to transfer Funds to a friend, I need to register him / her as a Payee and enter his Account Details. An SMS gets triggered to my Mobile which I enter on the Internet and confirm him as a Payee. It is only now, after payee confirmation that I can start transferring funds to him
(4) If your Bank does not have a Payee Registration Process with an SMS leg to it, then please do not use the Internet Banking of this bank, else if somebody hacks into it, they will be able to empty your account – and I am sure you do not want that happening
(5) Also ensure that you have an Instant SMS alert facility that whenever your Account is debited for RTGS/ NEFT or for any transaction s above a threshold, you should get an alert on the Mobile
(6) The bank should have daily limits for RTGS and NEFT Transfers
If the above criteria are met in the Internet Banking of your Bank, you can go ahead and execute Online Funds Transfers from your Bank Account
Payee Registration Process
There is one obstacle you will face in the Payee Registration process which is the entry of the IFSC Code of the destination Account. It is important to note that RBI has assigned an IFSC Code to every Bank Branch. This IFSC Code can be found in 2 ways
(1) One the Cheque Leaf: You will have to ask your friend the IFSC Code of his Bank Account which he can read on his cheque book / cheque leaf
(2) Bank and Branch Combination: Your Internet Banking may ask you to enter the Bank Name and Branch and Auto Select the IFSC Code. In this case you will have to ask your friend to specify his Branch
Common Problems faced with RTGS and NEFT Transfers
(1) Funds Transferred but not credited to the destination Account: You have no reason to worry. If the funds get returned to your account means that the data (Payee Name, Bank Name, Account Number, IFSC Code) you entered was incorrect.
(2) If the funds do not come back to your account and your friend has also not received them, all you need to do is call your bank. They will tell you if the funds are with them or have been transferred to the destination Bank
(3) If transferred to the destination bank then you can take the RBI Reference Code and pass it on to your friends. He can confirm the same to his bank and get the amount transferred to his account
(4) If the money is still with your bank, you can ask them to transfer it back to your account.
(5) These are small technical issues in the process and I will not dwell into the reasons for the same
Other than the Common problems and the security issues sighted above, this process works with 99.5% accuracy and can save you multiple trips to your Bank / ATMs to drop off cheques.
For any further clarification on Customer Related Banking Processes you can write to me at Ask.Pranav@Gmail.Com and I will revert to you as soon as possible
One of the cool things RBI has done in the last few years is introducing Online Funds Transfers which are of 2 types.
(1) RTGS: Real Time Gross Settlement which require a minimum transaction amount of Rs. 100,000 (transfer happens within 2 hours usually into the destination account)
(2) NEFT: National Electronic Funds Transfers which can be of any amount (transfers happen in 3 cycles of 10 AM, 2:00 PM and 4:00 PM or some similar time)
I am not dwelling too much on the technicalities of the process. What I want to highlight is the convenience of this process and the security aspects related to the same. The objective is to get more and more people (especially the younger crowd who are always short of time) to use this for funds transfers instead of cutting out cheques.
Security Aspects
(1) You will need to register for Internet Banking to effect RTGS and NEFT Transfers online
(2) Your Bank should have a Payee List (to whom you can make RTGS and NEFT payments) with a separate Payee Registration process.
(3) I have a Citibank Account whenever, I need to transfer Funds to a friend, I need to register him / her as a Payee and enter his Account Details. An SMS gets triggered to my Mobile which I enter on the Internet and confirm him as a Payee. It is only now, after payee confirmation that I can start transferring funds to him
(4) If your Bank does not have a Payee Registration Process with an SMS leg to it, then please do not use the Internet Banking of this bank, else if somebody hacks into it, they will be able to empty your account – and I am sure you do not want that happening
(5) Also ensure that you have an Instant SMS alert facility that whenever your Account is debited for RTGS/ NEFT or for any transaction s above a threshold, you should get an alert on the Mobile
(6) The bank should have daily limits for RTGS and NEFT Transfers
If the above criteria are met in the Internet Banking of your Bank, you can go ahead and execute Online Funds Transfers from your Bank Account
Payee Registration Process
There is one obstacle you will face in the Payee Registration process which is the entry of the IFSC Code of the destination Account. It is important to note that RBI has assigned an IFSC Code to every Bank Branch. This IFSC Code can be found in 2 ways
(1) One the Cheque Leaf: You will have to ask your friend the IFSC Code of his Bank Account which he can read on his cheque book / cheque leaf
(2) Bank and Branch Combination: Your Internet Banking may ask you to enter the Bank Name and Branch and Auto Select the IFSC Code. In this case you will have to ask your friend to specify his Branch
Common Problems faced with RTGS and NEFT Transfers
(1) Funds Transferred but not credited to the destination Account: You have no reason to worry. If the funds get returned to your account means that the data (Payee Name, Bank Name, Account Number, IFSC Code) you entered was incorrect.
(2) If the funds do not come back to your account and your friend has also not received them, all you need to do is call your bank. They will tell you if the funds are with them or have been transferred to the destination Bank
(3) If transferred to the destination bank then you can take the RBI Reference Code and pass it on to your friends. He can confirm the same to his bank and get the amount transferred to his account
(4) If the money is still with your bank, you can ask them to transfer it back to your account.
(5) These are small technical issues in the process and I will not dwell into the reasons for the same
Other than the Common problems and the security issues sighted above, this process works with 99.5% accuracy and can save you multiple trips to your Bank / ATMs to drop off cheques.
For any further clarification on Customer Related Banking Processes you can write to me at Ask.Pranav@Gmail.Com and I will revert to you as soon as possible
2 comments:
Hello,
It is simple and easy to understand about RTGS/NEFT.
In short, Does RTGS security feature cross check account name in addition to the account no?
Suppose, if the person wrongly type payee account no (but all other details are correct such as name, IFSC). Does the transaction stops or credited to that account no?.
Thanks
The transacted money bounces back to the sender's account .
Post a Comment