Banking Industry in India, is huge, and there are many facets to it. As I believe in Epayment Mechanisms, I am interested in Banks who are participants of RTGS/NEFT Epayment Systems. At present 96 Banks are part of RTGS, including Co-operative Banks. Hence, this list is an a good start.
Reserve Bank of India, has done an extraordinary job in creating the essential infrastructure for Epayment Systems.
The Reserve Bank of India had introduced NEFT system in 2005 and RTGS in 2004. As on date, the total number of banks participating in NEFT is 87 and that in RTGS is 96. There are over 49,000 bank branches participating in these two electronic funds transfer systems.
National Electronic Funds Transfer (NEFT) system is a nationwide funds transfer system to facilitate transfer of funds between NEFT enabled bank branches. The beneficiary using NEFT system gets the credit on the same day or the next day depending on the time of settlement.
The acronym 'RTGS' stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a 'real time' and on 'gross' basis. This is the fastest possible money transfer system through the banking channel.
Source: Reserve Bank of India Press Release Press Release: 2008-2009/248
1 comment:
ssThe biggest problem with e-payment is:-
1. First of all Attitude of the banker is the stumbling block for e-payments. Bank managers do not encourage this mode. They cite hundred reasons to shoo away customers.
2. Secondly, lack of training is a hurdle for E-banking. With lack of training, the old hands at the bank do not encourage or prefer this mode. Even managerial staffs in most banks do not possess the knowledge to handle RTGS & NEFT
4. Thirdly, Connectivity is the next big issue. Most part of the 7 working hours of a branch are spent without connectivity. SBI is the biggest culprit in the matter of connectivity, as its gateway is perpetually besieged with connectivity problems.
6. Fourthly, Bank holidays are a stumbling block with E-banking, especially for RTGS & NEFT payments. Once we are used to this method, the numerous and unwanted bank holidays put a spoke in the effective working of trade and industry.
7. Most banks have imposed a limit of Rs 1.00 lakh on transfer to third parties, when one uses e-transfer.
8. Most banks do not have the software, to support & permit customers to do e-transfer to third party accounts in banks other than their own.
9. When payments / transfers by NEFT and RTGS are done, the recipient does not receive details of the payments from the Payee. This leaves the payee in a quandary, as he will not under stand or come to know the source of payment. There is no system in NEFT or RTGS, by which the recipient get details person from he/she has received payment. People simply forget to send details of payments made, and the recipient is left to wonder and spent valuable time and energy to get this details.
10. All said & done, if one things that it is easier to maintain accounts with RTGS and NEFT, it is not so. Even Banks are left with numerous suspense accounts at the end of the day.
11. RTGS & NEFT cannot happen without human touch as is generally thought of. It needs a human being to do the data entry, and all possible types of mistakes are being done, some knowingly and some unknowingly.
Capt Lingaraju BL
Dated 10th Oct 2008
captbllingaraju@gmail.com
The writer has narrated the above based on his experience of handling RTGS since Aug 2008 as a customer, where in he is required to transfer funds from a PSU bank to SBI a/c of a PSU Company every day. He also receives payments through NEFT from the same PSU.
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