RTGS / NEFT Return Transactions – Information in Account Statement

RTGS / NEFT Return Transactions – Information in Account Statement

With the exponential growth in the RTGS/NEFT Transactions, RBI, DPSs, is making all efforts to ensure that the RTGS/NEFT experience for the end-users is excellent.

In this connection, today, (13/08/2010), Reserve Bank of India, Department of Payments and Settlement Systems, has issued new guidelines.

The RBI Notification number is RBI/ 2010-11/169 DPSS (CO) RTGS No. 341 / 04.04.002 / 2010-2011 dt.August 13, 2010, addressed to Chairman and Managing Director/ Chief Executive Officer of all banks participating in RTGS and NEFT.

The circular can be accessed @

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5945&Mode=0

The Highlights are:

1.      Uniform information for RTGS/NEFT Returns in the customer’s account statement.

2.      The following are the description to be provided

a) RTGS Return transactions

 -- RTGS-RETURN---

b) NEFT Return transactions

-- NEFT-RETURN—

3. The instructions will be live from 01/10/2010

Why was this Notification required?

Ø  With the growth of the RTGS/NEFT transactions, the customers were finding it difficult to reconcile transactions.

Ø  The non-uniformity of narration of Return Transactions, only added to the confusion.

Ø  The confusion was creating issues in Service Delivery at the customer’s point of touch i.e Bank Branches, Phone Banking.

What will this Notification achieve?

v  Introduce a uniform Return Description

v  Reduce the opportunities for customer complaints

v  Enhance the customer confidence in RTGS/NEFT System

v  Encourage new entrants to ePayments

Yes, obviously System changes as well as process changes in the Banks will be essential.

FootPoint: DPSS is one of the few department’s  which issues simultaneous instructions to Commercial Banks, Co-operative Banks.