RTGS System - Government Receipts-Customer Mode or InterBank Mode?

RTGS System - Government Receipts-Customer Mode or InterBank Mode?

  

Well the spurt in RTGS Transactions seems to be creating problems for Government Receipts.

As per the present Government Rules, any Credit to a Government Account (maintained in Banks) should be accompanied with a specified Challan, for reconcialtion of the Government Accounts by Government Officers.

However, it seems the Government Accounts are receiving credits through RTGS. Obviously, the present RTGS System does not support the Challan format. Hence, the receiving bank is forced to RETURN BACK the funds, leading to all round dissatisfaction.

Please visit RBI-FAQ section, for more details on Credits to Government Accounts @

http://www.rbi.org.in/Scripts/FAQView.aspx?Id=61

As a interim measure, Reserve Bank of India vide Lr.No.RBI/2009-10/226
DPSS (CO) RTGS No.991/04.04.002/2009 – 2010 dt.November 17, 2009, addressed to Chairman and Managing Director / Chief Executive Officer of all banks participating in RTGS, after consultations with major RTGS Participating Banks has : -

01)                      Advised Sending Banks to remit funds to Government Accounts only when there is a bi-lateral agreement with the Receiving Bank.

02)                     The RTGS messages should invariably be sent in Inter-Bank Mode i.e. R42, and not Customer mode i.e R41.

03)                     The RTGS Inter-Bank Message should be in conformity with the Wire Transfer Guidelines i.e http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=3415&Mode=0

                It should be noted in the above Notification, for InterBank Funds transfer i.e. where both the Beneficiary and Receiver are Banks, the wire transfer guidelines are exempted.

However, in the present notification, Reserve Bank of India, Department of Payment and Settlement Systems, has advised Banks to follow Wire Transfer Guidelines, in cases of R42-Inter Bank RTGS Messages, where the ultimate beneficiary is a Government Account.

The impact of today’s (i.e. 17^th November 2009) notification will be

01)                      Streamlining of credits to Government Accounts.

02)                     Reducing dis-satisfaction at Sender/Government Level.

It is to be noted that Reserve Bank of India, is clear that this is only a temporary arrangement, till the RTGS system is readied for credits to Government Accounts. And knowing Reserve Bank of India, RTGS will be ready very soon, for credits to Government Accounts.

Reserve Bank of India’s Notification dt.17/11/2009 (17^th November, 2009) can be accessed @ http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5374&Mode=0