The Department of Payment and Settlement Systems (DPSS) is a new department in the Reserve Bank which was operational with effect from March 2005. The Department is responsible for regulation and oversight on the Payment and Settlement Systems which encompass the cheque based clearing systems managed by the Reserve Bank and other commercial banks, Electronic Clearing Service (ECS), Electronic Funds Transfer (EFT) System, the inter-institutional Government Securities clearing, the inter-bank foreign exchange clearing as also the RTGS. The Department also provides secretarial support to the newly constituted Board for regulation and supervision of Payment and Settlement Systems (BPSS), which happens to be a Committee of the
For more details of the Department of Payment and Settlement Systems, please visit
http://www.rbi.org.in/scripts/AboutUsDisplay.aspx?pg=Depts.htm#DPSS
One major drawback the customers were having with RTGS Transactions, is the delayed credit of funds, returned to them by the Beneficiary Bank.
As per the RTGS Business Guidelines, funds that cannot be credited to the account of the beneficiary for some reason or other, has to be sent back to the sender’s account within one hour and thirty minutes. The Beneifcary Bank, returns the funds to the Ordering Bank, as an Interbank Transaction. At present, an RTGS customer transaction that is returned to the originating bank, is treated as an inter bank transaction.
As there are no standard messaging rules for Inter-bank Transactions, the Remitters complained that in case the funds are ‘RETURNED’, the corresponding credit to their accounts was getting delayed.
This message was being conveyed to Reserve Bank Of India too, at various forums.
To address this issue, RBI vide Lr.No. RBI/2008-09/499,DPSS (CO) RTGS No. 2246 / 04.04.002 / 2008 – 2009 dated
The complete letter can be accessed at http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5036&Mode=0
2 comments:
hi
I do have one query. I am posting here because the problem may be with anyone. we as an organisation wants to implement NEFT mode of payment to help our pensioners. we had obtained their bank account no, bank IFSC no, bank name & branch name etc which are necessary for NEFT. Is it necessary to separate cheques for each payments or we can several payments in one cheque and issue one statment to bank for NEFT settlement.and what is the time frame to settle the NEFT payment.
Hi arvind
A single cheque with the supporting Statment is enough for multiple
NEFT transactions. There is no need for individual cheques for individual NEFT transactions.
The settlement cycle is T+1 i.e if the transaction is executed on 19th, the funds will reach the beneficiary maximum by 20th.
Some tips to ensure sucess of NEFT transactions, as Pensioners will be eagerly waiting for the pension amount.
01) Once the basic details are obtained i.e Account Number, Account title(name) IFSC Code, execute dummy transactions of Rs1/ each. In case if any transaction is returned, basing on the Return Reason, necessary corrections can be made.
02) Preferably execute the transactions on Monday, so if any problem is there, funds can be resent fast.
My experience tells, that Banks on CBS(core banking solutions) offer credits at a faster rate, than stand-alone banks.
03) Request your banker to provide the Transactions executed details in excel format. This data will be very handy, in case of any query.
04) Once the settlement details are received from the bank, cross-check the same with the statement submitted by you. This is to ensure, that the bank has executed the transactions correctly, and in case of any discrepancy, corrective steps can be taken immediately.
I am sure the payment of Pension through NEFT will stabilize once a complete cycle is executed by your organisation and your bankers.
In fact many organsiations are using NEFT for Salary Payouts
Please do revert for any additional clarifications.
prashantn
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