15/01/2011 – RTGS/NEFT is working

15/01/2011 – RTGS/NEFT is working

Andhra Pradesh, Assam, Karnataka, Pondicherry, Tamil Nadu are closed, but other states are working.

However, customers in the above locations can transact online, if sufficient funds are available in their account

NPCI-IMPS-IMPS Volumes.

NPCI has updated the December 2010, IMPS Statistics on its website. The same can be accessed @

http://www.npci.org.in/impsVolumes.aspx

Top 5 Interpretations of the Statistics

01)  Seven Banks have joined the IMPS Network and an additional 7 Banks are in the testing stage.

02)  Membership of NFS (National Financial Switch) is a pre-requisite for Banks to be part of the IMPS Network. Hence as on date 52 Banks can be part of the IMPS Network.

03)  Volume wise there is not much growth in Dec 10, as compared to Nov 10.

04)  However, there has been a fantastic jump in the average transactions size. In Nov 10, the average transaction was for Rs552. Whereas in Dec 10, the average transaction has jumped to Rs2600/-

05)  One unexplainable point is that the remittances in paisa are also happening. It can be assumed, that this are test transactions.

IMPS Product Features - AXIS Banks

IMPS Product Features - AXIS Banks


Axis Bank has described it's IMPS Product features @ http://www.axisbank.com/24x7banking/imps/imps.asp


The write up is brief and to the point. 


The complaint resolution mechanism is not to be seen anywhere.

RTGS System – Use of NEFT Customer Facilitation Centres

RTGS System – Use of NEFT Customer Facilitation Centres

The RTGS Participants i.e Bankers, Customers, RBI-DPSS, have felt the need for RTGS Customer facilitation centres on the same line of NEFT Customer Facilitation Centres launched in 2009.

As the NEFT Customer Facilitation Centres, has been a success, RBI has advised Banks to make use of the same centres to resolve RTGS complaints too.

The Notification can be accessed @ http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6164&Mode=0

In majority of the banks, there is a common hub for both RTGS and NEFT transactions. Such banks should be able to quickly adapt to the above directives.

In the few banks, which have a different hub for RTGS and NEFT, the adaptability will be a little slow.

In the long run, Banks will find it advantageous to have a common hub for RTGS/NEFT monitoring or at least be in the same location.

From the customer’s view, a transaction routed through RTGS or NEFT is irrelevant as long as it is a ePayment transaction.

Ideally, in the front end for customers accessing the Net Banking, there should be minimal difference between RTGS and NEFT Data-entry screens.  

As I keep repeating, Banks should have a common email id, which will be easy to remember. Some suggestions.  

epayments@_____________ (bank name)

ccuseapayments@_________(bank name)

Individual email id’s should be discouraged, as the emails will become invalid, on the person leaving the organization or moving to other department.

Credit to NRE Account through RTGS / NEFT / NECS / ECS - Issuance of Foreign Inward Remittance Certificate (FIRC)

Credit to NRE Account through RTGS / NEFT / NECS / ECS -
Issuance of Foreign Inward Remittance Certificate (FIRC)

NRE customers are finding it beneficial to receive funds in their account via the Credit Push Systems viz RTGS, NEFT, NECS and ECS, than the old-fashioned Cheque method.

As per RBI, Lr.No. DPSS.(CO).EPPD.No.327/04.03.02/2009-10  dt.14/08/2009, RBI has informed that the  onus of ensuring that credits to NRE accounts comply with the extant FEMA Regulations and the Wire Transfer Guidelines  rests with the originating institution / sponsor bank.

This is to ensure that the STP in Credit Push transactions is seamless and settlement takes place within the TAT levels.

In the recent past, RBI has received references from Member Banks seeking clarity on issuance of FIRC’s to NRE accounts.

As the number of such references were going, RBI,DPSS has clarified the matter.

The clarification is vide RBI, DPSS Lr.No.RBI/2010-11/315, DPSS.(CO).EPPD.No.1309/04.03.01/2010-11     dt. December 13, 2010.

This circular can be accessed @

The highlights are : - http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6148&Mode=0

*    In terms of para 3.A.6 of Exchange Control Manual read with AD (MA series) circular No. 11 dated May 16, 2000, FIRC should not be issued against remittance for credit to NRE account.

*          Inward remittances especially via RTGS/NEFT are routed to Non-NRE Accounts too. In this case, FIRC has to be issued by the Bank which converts the foreign currency into rupees.            

The remitting (intermediary) Bank instead of routing the Inward Remittance proceeds via Demand Draft (INR), might prefer to route through RTGS/NEFT. In this case, the details have to suitably keyed in while processing the RTGS/NEFT Transactions. 

It would be a customer friendly step, if the contact details of the Inward Remittance Department of the Intermediary Bank/Remitting Bank are mentioned in the RTGS/NEFT Message itself.

This will enable the customers to directly contact the concerned department for any clarifications, if any.

What is a FIRC?

Receipt of foreign exchange in India is called Inward remittance. Apart from exports there are other transactions, which generate inward remittance. For example Non-resident Indian staying abroad may remit foreign exchange to their relatives in India. Inward remittances are usually in the nature of foreign currency notes, foreign currency traveller cheques, foreign currency cheques / foreign currency demand drafts and inward telex transfers.

Authorised dealers should issue foreign Inward Remittance Certificate (FIRC) in the prescribed form if requested by the beneficiary.

           (i).          If the amount received exceeds Rs.15, 000/- in value, then the FIRC should be issued on security paper. The FIRC forms should be printed on security paper. If, however, the amount received from abroad does not exceed Rs.15, 000, then the FIRC may be issued on the printed letterhead with logo of the authorized dealer instead of on the security paper.

      (ii).          Exporters may ask for certificates to be issued by authorised dealers for submission to the office of the Director General of Foreign Trade (DGFT). Authorised dealers may issue such certificates - after verifying all the required particulars.

 (iii).          Sometimes customers may ask for inward remittance certificates for submission to the Income tax Department. Authorised dealers may also comply with such requests.

      (iv).       Whenever exporters receive advance remittances, it is their practice to obtain FIRC for the amount so received from the bank concerned. Subsequently as and when export is made and documents are presented by the exporter, the FIRC mentioned above should be called for in original and necessary endorsement made thereon by the authorised dealer.