RTGS / NEFT / NECS / ECS - Delays in affording credits and / or return of transactions by member banks

 RTGS / NEFT / NECS / ECS - Delays in affording credits and / or return of transactions by member banks

Today, RBI, DPSS has issued a follow-up Notification, emphasizing the need for Banks to adhere to the procedural guidelines, with respect to Credits through

1)   RTGS 

2)   NEFT 

3)   ECS 

4)   NECS

AND also

1) Return of transactions by member banks

The circular no is RBI/2010-11/155 DPSS (CO) EEPD No. 282 / 04.03.01 / 2010-11 dt.  August 5, 2010, addressed to The Chairman and Managing Director / Chief Executive Officer of member banks participating in RTGS / NEFT / NECS / ECS

The full Notification is @

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5927&Mode=0

Why was this Notification required?

a)      Increase in number of complaints by the Bank’s customers to Reserve Bank of India.

b)    The need to maintain credibility of RTGS / NEFT / NECS / ECS Schemes

Is any action required by the Bank customers, to ensure that the credit reaches the Beneficiary in time.

Yes, the remitting customers need to ascertain the complete details of the Beneficiaries’, before they request their bankers to execute the RTGS/NEFT transactions.

a)      Beneficiary Account No

b)      Beneficiary Account Holder Name

c)      Beneficiary Bank

d)     Beneficiary IFSC

Nothing more, nothing less.

Neft Timings In India - from 01/03/2010

Present NEFT  Timings	New Neft Timings I.e from 01/03/2010
Weekdays	Weekdays
9.00 am to 5.00 pm	9.00 am to 7.00 pm
Saturdays	Saturdays
9.00 am to 12 noon	9.00 am to 1.00pm

NEFT New Features from 01/March/2010 (01/03/2010) – Part 1

NEFT New Features from 01/March/2010 (01/03/2010) – Part 1

All the new features are good, and have their own advantages.

Today’s post deals with the increase in Operating Hours.

NEFT is currently available from 9 am to 5 pm on week days and from 9 am to 12 noon on Saturdays.

However, Reserve Bank of India, was constantly receiving requests to increase the operating hours.

Critics may argue that the 98% of India’s Bank branches close for public business by 4.30pm, and hence there is no need for increase in the NEFT operating hours.

Where do the NEFT Transactions Originate?

01) Bank Branches

02)                       Bank’s Internet Site

03)                       Bank’s Mobile Banking

04)                       Bank’s Bulk upload Centre.

05)                       Bank’s ATM’s eg: Corporation Bank

But, a sample survey will show, that only 20-25% of the NEFT transactions originate at branch level. The rest emanate from Net Banking, Bulk Uploads, Mobile Banking, i.e independent of the Branch Operations. Such a channel, obviously operate at 24X7.

Hence the request for, increase of the NEFT Operating Hours.

Present NEFT  Timings	New Neft Timings I.e from 01/03/2010
Weekdays	Weekdays
9.00 am to 5.00 pm	9.00 am to 7.00 pm
Saturdays	Saturdays
9.00 am to 12 noon	9.00 am to 1.00pm

Revised BSE and NSE Timings- 04/01/2010-04th January 2010

Revised BSE and NSE Timings:

It is the norm that the trading for BSE and NSE should be similar. This is for operational convenience as well as to minimize arbitrage opportunities between the two Stock Exchanges.

On 15^th December, 2009, BSE took the decision to modify its trading timings from 9.45 am to 3.30pm. This took NSE by surprise, and NSE retaliated by announcing new NSE Trading timings, i.e from 9.00am, on 16^th December, 2009

However, today i.e 17^th December, 2009, both BSE and NSE patched up and announced common Trading Timings.

The Common Trading Timings are 9.00 am to 3.30pm, w.e.f 04^th January, 2010.

A common Press Release has been uploaded both the in BSE and NSE Website.

The Press Release can be accessed @

http://www.bseindia.com/cirbrief/pr171209.asp

This means all the market participants i.e Brokers, Stock Exchange Personnel, Banking Personnel, have two weeks to gear up for the new timings.

Initially, everyone connected to the Stock Exchanges, feel that the volumes will not improve due to the extension of the trading timings.

However, I beg to differ, the Volumes will surely increase. It is very simple, everyone luvs to make money fast.

Now the moot point is whether the RTGS timings need to be changed, in view of the commencement of trading timings from 9.00am.

The present RTGS Customer Session commences at 9.00am, and as the Stock Markets (BSE and NSE) started at 9.55am, the Banks had sufficient time, to be ready for the Stock Market RTGS transactions.

But, with the new Stock market timings (BSE and NSE) of 9.00am, it has to be seen, how Reserve Bank of India, will respond. I am sure Reserve Bank of India, view also has been factored, when deciding the 9.00am deadline.

BSE-Extension in Trading Timings

BSE-Extension in Trading Timings

In October, market regulator, Securities and Exchange Board of India allowed stock exchanges to set their trading hours between 9 am and 5 pm.

Bombay Stock Index(BSE) has taken the first step, towards this trading hours.

Today  BSE has announced that from December 18, 2009, there is a change in the trading hours. The timing has been extended by 10 minutes.

The present BSE trading timings are 9.55am to 3.30pm, and the new trading timings w.e.f. December 18, 2009, Friday are 9.45am to 3.30pm.

The complete BSE Notification can be accessed at

http://www.bseindia.com/cirbrief/new_notice_detail.asp?noticeid={07965150-5F30-4380-9109-AAB75CCD40C7}noticeno=20091215-8&dt=12/15/2009&icount=8&totcount=33&flag=0

Well to me, this seems to be the beginning for eventually moving to the 9am to 5pm cycle. BSE intends to take small steps at a time, so that all the Stake Holders i.e Brokers, BSE Operations Team, Bankers, Trading Public, have a smooth switch-over to the extended timings.

And, Friday is a good day to start auspicious matters.

New RTGS Timings on Saturdays

New RTGS Timings on Saturdays

In January 2009, Reserve Bank of India, extended the timings for RTGS Transactions.
Continuing this tradition, Reserve Bank of India, has further modified the RTGS timings for Saturdays w.e.f 11/12/2009.


         Existing                                                       New
 Saturday RTGS Timings                  Saturday RTGS Timings
Customer        12.30pm                            Customer    1.30pm

Inter-Bank          2.30pm                          Inter-Bank    3.00pm

   
The RTGS Customers timings have been extended by an hour. Folks may say, what is the use of extension of timings, as most of the Bank Branches function only for half-day on Saturdays and majority of the Bank Branches close by 12.30pm.

But through Internet Banking, the transactions can be executed by the customers themselves. So, the extended timings are a benefit only. Initially the volumes in the extended hour might be low, but once the customers get used to the new timings, the volumes will surely increase.

This is a precursor to new timings on Weekdays too, which might be announced in the next couple of months.

 

SEBI-Extension of Bourse Timings

Well SEBI has decided the bourses to extend the market hours by by around two-and-a-half hours between 9 am and 5 pm.

The current market hours stand from 9.55 am to 3.30 pm.

" ... it has been decided to permit the stock exchanges to set their trading hours (in the cash and derivatives segments) subject to the condition that the trading hours are between 9 am and 5 pm," SEBI said.

The Securities and Exchange Board of India (SEBI) further asked the bourses to reset their timings provided they have in place risk management system and infrastructure commensurate to the trading hours.

What are the implications for the Bankers:

Bankers have to gear up for the extended trading hours, as Brokers/Exchanges will be requiring access to funds during the trading hours.

The RTGS timings will be extended further, to be in tune with the Stock Exchanges Trading Hours.  Both the RTGS Opening time and Closing time might be extended.

This extension of timings will be beneficial to other Bank Customers as well.

Please refer my earlier Post on this subject @

http://prashantnepayments.blogspot.com/2009/07/increase-in-rtgs-timings-is-it-required.html

The SEBI Circular can be accessed at

http://www.sebi.gov.in/circulars/2009/dnpdcir47.pdf

Bankers, Prepare for the Extended Timings.

Increase in RTGS timings-Is it required

Increase in RTGS timings-Is it required

Banks may change timings if bourses extend trading

At present RTGS Session Time on week ends is 9.00am to 6.00pm, and than again 7.00pm to 7.30pm

However, the above timings may have to be revised if SEBI, decides to incrae the market hours of trading in exchanges. The Securities and Exchange Board of India had placed a discussion paper titled “Increase in market hours of trading in exchanges” on its Web site on March 19 for seeking public comments.

Mr Namo Narain Meena, Minister of State for Finance, told the Lok Sabha in a written reply, on 24^th July, 2009 that Banks and other financial institutions are likely to change their timings if the capital market regulator were to allow stock exchanges to extend their trading hours, the Lok Sabha was informed today.

At present, the longest RTGS Session time is in New Zealand, i.e 23 hours 30 minutes on week days.

Surprised, for confirmation just visit this link

http://www.emeap.org/emeapdb/upload\Publications\rtgs.pdf

However, it is to be seen, if there will be increase in customer session timings or only inter-bank session timings, or will the settlement sessions take place, with breaks in between.

April 1st, 2009 is a RTGS/NEFT Holiday on account of Annual Closing of Bank Books.

April 1st, 2009  is a RTGS/NEFT Holiday on account of Annual Closing of Bank Books.

 

            In the initial years, Reserve Bank of India, used to keep open the RTGS/NEFT System open, even though banks were closed for customer transactions. This led to lot of confusion, both at the customer’s end and Bank’s end. So, Reserve Bank of India, decided to keep the RTGS/NEFT Sytem closed on 1^st April. 

            Ultimately, the RTGS/NEFT System is for the benefit of the customers, and if there is holiday for customer transactions, there is no meaning in keeping open the system. 

            The April1st Holiday, might affect retail customers, as folks would be interested to remit monies to their parents/relatives as Salary would have been just received. However, as the Holiday, is the middle of the week, the consequence would be less. 

            So, folks avoid any ePayments transactions on 1^st especially on NetBanking, as the transactions would be executed only on the next working day. 

 

Bank of Baroda-NEFT Timings

Bank of Baroda-NEFT Timings
Website	www.bankofbaroda.com
Total Number of Branches	2884 as on 26th March, 2009
Bank of Baroda -NEFT Timings	NEFT payment settlement takes place 6 times a day (9.30 am, 10.30 am, 12.00 noon. 1.00 pm, 3.00 pm and 4.00 pm) and 3 times during Saturdays (9.30 am, 10.30 am and 12.00 noon).
Facility Available on Bank of Baroda  Net Banking	No, NEFT facility is available on their Net Banking.
NEFT Cutoff time for Online Transactions	Not Applicable
Brand Name for Bank of Baroda’s  NEFT Scheme	NIL
Bank Founded on	10th July 1908
Toll Free Contact Number	1800 22 4447
Email ID for Customer Complaint Resoultion	gm.ops.ho@bankofbaroda.com
Brief History	Brief History It all started with a visionary Maharaja's uncanny foresight into the future of trade and enterprising in his country. On 20th July 1908, under the Companies Act of 1897, and with a paid up capital of Rs 10 Lacs started the legend that has now translated into a strong, trustworthy financial body, THE BANK OF BARODA. It has been a wisely orchestrated growth, involving corporate wisdom, social pride and the vision of helping others grow, and growing itself in turn. The founder, Maharaja Sayajirao Gaekwad, with his insight into the future, saw "a bank of this nature will prove a beneficial agency for lending, transmission, and deposit of money and will be a powerful factor in the development of art, industries and commerce of the State and adjoining territories." The bank, along with 13 other major commercial banks of India, was nationalised on 19 July 1969, by theGovernment of India.

ePayments{RTGS/NEFT}-Delay 5 STATE BANK OF INDIA ASSOCIATE BANK'S OFFICERS TO GO ON STRIKE on 28th March, 2009

Originally, there were 7 Associate Banks of State Bank of India. After, State Bank of Saurashtra’s merger with State Bank of India, the number has come down to 6. 

          Out of the 6 remaining Associate Banks, SBI - State Bank of Patiala, State Bank of Hyderabad, State Bank of Indore, State Bank of Bikaner and Jaipur) State Bank of Mysore, State Bank of Travancore, Officers of five associate banks of the State Bank of India (SBI) will go on strike on March 28 to press for parity with the parent bank in terms of prerequisites and loans to employees.

However, officers of State Bank of Indore would not join the strike.

 The strike, under the banner of the Associate Banks' Officers Association, would also be in protest against plans of a merger between SBI and associate banks. 

          The above strike, if materializes, would cause delay in credits of ePayments(RTGS/NEFT), especially as 27^th March 2009, is a Ugadi Holiday, in Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Uttar Pradesh and Jammu & Kashmir. 

          Banking Customers in the above 7 States, might face  major holdup of funds, as the above Associate Banks, will be shut for 3 days in a row i.e 27^th, 28^th and 29^th.

          This will be experienced more by banking customers, who utilize Net Banking, for transfer of funds. 

          Trust banking customers have taken the stretched weekend and planned their remittances accordingly.

Old NEFT Timings i.e prior to 01/03/2010

Viewers have been requesting for NEFT timings also. Please find the same enclosed.

NEFT	Weekdays (Mon to Fri)	09.00 to 17:00 Hrs
	Saturdays	09.00 to 12:00 Hrs

NEFT operates on a settlement cycle, and the present settlement cycles, takes place 6 times daily(Monday to Friday), at 9.00am, 11.00am, 12.00noon, 1.00pm, 3.00pm, and 5.00pm. On Saturdays, there are only 3 settlment cylces i.e 9.00am, 11.00am, 12.00noon.

The fastest way to get funds through NEFT, is to execute a payment in the night,(as all banks now offer NEFT facility, through their NET Banking Mode) and the transaction will be settled in the next working day 9.00am batch. Transactions executed after cut-off time, will be in the queue, and will be executed in the immediate settlement cycle.

The beauty of NEFT is that, once the payment is executed, it settles in the subsequently available settlement cycle, without any manual intervention.

RTGS-Extension of Timings on Saturday

Today Reserve Bank of India, has taken a vital step, towards increasing the volumes of RTGS Transactions on Saturday.

Reserve Bank of India, has extended the Customer timings applicable for Saturdays, from 12 noon, to 12.30pm i.e increase of window, by 30 minutes. Concurrently, the Inter-Bank Timings too has been increased from 2.00pm to 2.30pm.

The effects of this extension, will be visible in the next couple of months, when the Financial Year comes to an end.

The Latest RTGS Timings are dispalyed here for your benefit: 

		RBI Cut-Off
RTGS Customer	Weekdays (Mon to Fri)	09.00 to 16:30 Hrs
	Saturdays	09.00 to 12:30 Hrs
RTGS Inter Bank	Weekdays (Mon to Fri) Special Inter Bank Session	09.00 to 18:00 Hrs 19:00 to 19:30 Hrs
	Saturdays	09.00 to 14:30 Hrs

 

Each Bank in our country, has their internal cut-off timings, for customers to submit RTGS   RTGS requisitions. Normally, the  requests,  for RTGS will be accepted up to 15 minutes before the cut off timings at Bank  Branches. 

In case of Net Banking the requests will be accepted up to 30 minutes before the cut off timings. This is due to safeguard against any technical issues. However, still many banks, are yet to offer RTGS facility on Net Banking.