inward message on Day 3 of the EFT processing cycle. The remitting branch will,
therefore, have precise information as to when the beneficiary’s account was credited.
It is not necessary for all branches to have computer systems. Branches can send the
remittance details to their service branch in paper format (the copies of the EFT
Application Forms submitted by the remitting customers accompanied by a Remittance
Scroll). The Service branch will make data entry and transmit the funds transfer
information electronically to local NCC. But, if a branch has computer facility, it can
transmit funds transfer information electronically to its service branch either on a floppy
or through a network. This would minimize the data entry work at the service branch.
Additional organizational structure
Each participating bank has to identify a branch at the respective centre to act as the link
point for transmitting all outward messages and receiving all inward messages. The
Service Branches/Main Branches of banks who have been coordinating the cheque
clearing work are in the best position to discharge this role. So no additional
organisational infrastructure is required to be created.
Processing charges/Service charges
While RBI has waived processing charges till March 31, 2006, levy of service charges by
banks is left to the discretion of respective banks.
Benefits the banks?
• Banks can now provide interbank TT service.
• Reconciliation is automatic.
• Banks can make use of the EFT infrastructure for introducing new payment/cash
management products to their customers.
The number of outstation cheques issued by customers and consequent service load on
banks may decline over a period of time.
REAL TIME GROSS SETTLEMENT
Real time gross settlement (RTGS)
• RTGS is an internationally accepted system to minimize the settlement risk.
• It is the centerpiece of an integrated payment system.
• The settlement occurs simultaneously for delivery of payments (i.e. in real time) for full
value of each payment (i.