Real Time Gross Settlement

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Real time gross settlement systems (RTGS) are specialist funds
transfer systems where transfer of money or securities[1] takes
place from one bank to another on a "real time" and on "gross"
basis. Settlement in "real time" means payment transaction is not
subjected to any waiting period. The transactions are settled as
soon as they are processed. "Gross settlement" means the
transaction is settled on one to one basis without bunching or
netting with any other transaction. Once processed, payments are
final and irrevocable.
RTGS systems are typically used for high-value transactions that
require immediate clearing, in some countries the RTGS systems
may be the only way to get same day cleared funds and so may
be used when payments need to be settled urgently such as
when purchasing a house. However most regular payments would
not use a RTGS system, but instead would use a
national payment system or network that allows participants to
batch and net payments.
RTGS systems are usually operated by a country's Central
bank as it is seen as a critical infrastructure for a country's
economy. Economists view that an efficient national payment
system reduces the cost of exchanging goods and services, and
is indispensable to the functioning of the interbank, money, and
capital markets. A weak payment system may severely drag on
the stability and developmental capacity of a national economy;
its failures can result in inefficient use of financial resources,
inequitable risk-sharing among agents, actual losses for
participants, and loss of confidence in the financial system and in
the very use of money[2]

Pay By the Due Date

It’s important to pay your bill on time. If you don’t, count on paying
late fees and additional finance charges.
When you make a payment, your card issuer generally must
credit your account the day they receive it, but there are
exceptions.


Your issuer can specify reasonable requirements for
payment. For example, your issuer can set a reasonable cutoff hour for your payment to be received for crediting on that
day, but generally, it can't be before 5 p.m. on the due date at
the location the issuer specifies.
 Your issuer can require that you include an account number
or payment stub with your payment.
 Your issuer doesn’t have to credit your account the day your
payment is received if a delay won’t result in a charge to you.
To help avoid additional charges, follow your issuer’s payment
instructions. Sending your payment to the wrong address — even
if the payment is received and accepted at some other office of
the issuer — could delay crediting your account for up to five
days. If you pay by mail and misplace your payment envelope,
look for the payment address on your billing statement or call the
issuer for the correct address for payments. If you pay your bill
online, set up a reminder a week or so before the bill is due to be
sure you pay on time and to the proper electronic address. Set up
a return electronic notice showing the company received your
online payment. No matter what method you use, check your
billing statement to be sure you have the right due date and
location for each account.
Automatic debiting to your bank account can be a convenient way
to pay bills, but there are factors to consider. For example, the
amount due each month could vary, and you would need
sufficient funds in your bank account to pay it. Otherwise, you
could overdraw your account, be charged for insufficient funds,

and damage your credit rating. Under federal law, you can't be
required to use automatic debits from your bank account to repay
an extension of credit.
An ATM card (also known as a bank card, client card, key card,
or cash card) is any payment card issued by a financial
institution to its customers which enables a customer to access
an automated teller machine (ATM) for transactions such as
deposits, cash withdrawals, obtaining account information, and
other types of banking transactions. The payment card may be
any card which has that feature enabled, and may be a debit,
credit, a limited-use ATM or other card. Interbank networks allow
the use of ATM cards at ATMs of financial institutions other than
those of the issuing institution.
ATM cards can also be used on improvised ATMs, such as
merchants' card terminals that deliver ATM features without any
cash drawer (commonly referred to as mini ATMs).[1][2] These
terminals can also be used as Cashless scrip ATMs by cashing
the fund transfer receipt at the merchant's Cashier.[3]
The first ATM cards were issued by Barclays in London, in 1967,
and by Chemical Bank in Long Island, New York, in 1969.[4
Electronic Clearance Service (ECS)
The Electronic Clearance Service (ECS) scheme provides an
alternative method of effecting bulk payment transactions like
periodic (monthly/ quarterly/ half-yearly/ yearly) payments of
interest/ salary/ pension/ commission/ dividend/ refund by
Banks/Companies /Corporations /Government Departments. The
transactions under this scheme move from a single User source
(i.e. Banks/Companies /Corporations /Government Departments)
to a large number of Destination Account Holders
(Customers/Investors). This scheme obviates the need for issuing
and handling paper instruments and thereby facilitates improved

customer
service
by
the
Banks
and
Companies/Corporations/Government Departments effecting bulk
payments.
The Scheme is in operation at 15 centres where Reserve Bank of
India manages Clearing Houses, 21 centres where SBI is
managing ECS on behalf of RBI and 29 other centres where PNB
and other banks are managing ECS on behalf of RBI.
The ECS is being offered in the Department of Posts in
connection with payment of monthly interest under “Monthly
Income Scheme” (MIS). The Department of Posts introduced ECS
scheme on a pilot basis in Mumbai City on 9th August 2003.
Under ECS, the depositors have the facility of getting MIS interest
automatically transferred and credited into their SB account on
the due dates at the designated Bank of their choice. Currently,
the service is available in the Department of Posts at 15 RBI
locations and 21 SBI locations as given below.

National Electronic Funds Transfer (NEFT) NEFT is electronic
funds transfer system, which facilitates transfer of funds to other
bank accounts in over 63000 bank branches across the country.
This is a simple, secure, safe, fastest and cost effective way to
transfer funds especially for Retail remittances.
FEATURES & BENEFITS
Customers can remit any amount using NEFT Customer intending
to remit money through NEFT has to furnish the following
particulars:
 IFSC (Indian Financial System Code) of the beneficiary
Bank/Branch

 Full account number of the beneficiary
 Name of the beneficiary.
The facility is also available through online mode for all internet
banking and mobile banking customers.
For corporate customers, bulk upload facility is also available at
branches.
TIMINGS
Customers can use this facility between 8 AM and 7 PM on all
weekdays and between 8 AM and 1 PM on Saturday. There are
twelve hourly settlements between 8 AM and 7 PM on all
weekdays and six hourly settlements between 8 AM and 1 PM on
Saturdays.
The money will be credited to the beneficiary’s account on the
same day or at the most next day in case the message is sent
during the last batch of settlement. Union Bank offers NEFT
facility to its customers through all its branches.
CHARGES
Rs. 5/ per transaction if the transaction amount is less than Rs. 1
lakh
Rs. 25/- per transaction if the transaction amount is more than Rs.
1 lakh
NOTE: Charges are waived for customers availing services at our
branches in North Eastern States

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