A core banking solution is the software used to support a bank’s most common transactions.
Elements of core banking include:
Making and servicing loans.
Opening new accounts.
Processing cash deposits and withdrawals.
Processing payments and cheques.
Calculating interest.
Customer relationship management (CRM) activities.
Managing customer accounts.
Establishing criteria for minimum balances, interest rates, number of withdrawals allowed and so on.
Establishing interest rates.
Maintaining records for all the bank’s transactions.
Customers can continue to use ATMs and other Delivery Channels, which are also interfaced with CBS platform. Similarly, facilities like Bill Payment, I-Bob, M-bob etc. shall also continue to be available. Bank is in the process of launching Internet-banking facility shortly.
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NEFT
The acronym “NEFT” stands for National Electronic Funds Transfer.
It is an online system for transferring funds from one financial institution to another within India usually the banks).
The system was launched in November 2005, and was set to inherit every bank that was assigned to the SEFT (Special Electronic Funds Transfer System) clearing system.
It was made mandatory by the RBI for all banks on the SEFT system to migrate to NEFT by mid December 2005. As such, SEFT was discontinued as of January 2006. The RBI welcomed banks that were full members of the RTGS to join the NEFT system.
RTGS
The acronym “RTGS” Stands For ‘Real Time Gross Settlement’.
RTGS is a funds transfer system where money is moved from one bank to another in ‘real-time’, and on gross basis.
When using the banking method, RTGS is the fastest possible way to transfer money. ‘Real-time’ means that the payment transaction isn’t subject to any waiting period.
The transaction will be completed as soon as the processing is done, and gross settlement means that the money transfer is completed on a one to one basis without clustering with another transaction.
The transaction is treated as final and irrevocable as the money transfer occurs in the books of the RBI (Reserve Bank of India). This system is maintained by the RBI, and is available during working days for a given number of hours.
Banks using RTGS need to have Core banking to be able to initiate RTGS
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- What is the minimum/maximum amount for RTGS/NEFT transactions under Retail Internet Banking?
| Type |
Minimum |
Maximum |
| RTGS |
Rs.2 Lakhs |
No Limit |
| NEFT |
No Minimum |
No Limit |
- What is the minimum/maximum amount for RTGS/NEFT transactions under Corporate Internet Banking?
| Type |
Minimum |
Maximum |
| RTGS |
Rs.2 Lakhs |
Rs.50 lakhs for Vyapaar and
Rs.500 crores for Vistaar |
| NEFT |
No Minimum |
Rs.50 lakhs for Vyapaar and
Rs.500 crores for Vistaar |
- When does the beneficiary get the credit for a RTGS payment?
Under normal circumstances the beneficiary Bank branch receives the funds in real time as soon as funds are transferred by the remitting Bank. The beneficiary Bank has to credit the beneficiary's account within two hours of receiving the funds transfer message.
- When does the beneficiary get the credit for a NEFT payment?
As stated above, NEFT operates in hourly batches. Currently there are eleven settlements from 9 am to 7 pm on week days and five settlements from 9 am to 1 pm on Saturdays. Therefore, the beneficiary can expect to get the credit for the transactions put through between 9 am to 5 pm on weekdays (between 9 am to 12 noon on Saturdays) on the same day. For transactions settled in the 6 and 7 pm batches on week days and at 1 pm on Saturday, the credit will be afforded either on the same day or on the next working day.
- If an RTGS transaction is not credited to the beneficiary account, does the remitter get back the money?
Yes. If the beneficiary's bank is unable to credit the beneficiary's account for any reason, the former will return the money to the remitting bank within 2 hours. Once the amount is received by the remitting bank, it is credited to the remitter's account by the branch concerned.
- If an NEFT transaction is not credited to a beneficiary account, does the Remitter get back the money?
Yes. If the beneficiary's bank is unable to credit the beneficiary's account for any reason, the former will return the money to the remitting bank within 2 hours of completion of the batch in which the transaction was processed. Once the amount is received by the remitting bank, it is credited to the remitter's account by the branch concerned.
- At what time during the day/week the RTGS & NEFT services are available?
RTGS transactions are sent to RBI as per the following schedule:
| Day |
Start Time |
End Time |
| Monday to Friday |
9:00 hrs |
16:30 hrs |
| Saturday |
9:00 hrs |
13:30 hrs |
NEFT transactions will be sent to RBI based on the following schedule:
| Day |
Start Time |
End Time |
| Monday to Friday |
8:00 hrs |
18:30 hrs |
| Saturday |
8:00 hrs |
12:30 hrs |
RBI NEFT transactions are settled in batches based on the following timings:
- 11 settlements on weekdays - at 09:00, 10:00, 11:00, 12:00, 13:00, 14:00, 15:00, 16:00, 17:00, 18:00 and 19:00 hrs.
- 5 settlements on Saturdays - at 09:00, 10:00, 11:00, 12:00 and 13:00 hrs.
Please note that all the above timings are based on Indian Standard Time (IST) only.
- What is the mandatory information required to make an RTGS & NEFT payment?
For effecting an RTGS/NEFT remittance the remitter has to furnish the following information:
- Amount to be remitted.
- Remitting customer's account number which is to be debited
- Name of the beneficiary bank.
- Name of the beneficiary.
- Account number of the beneficiary.
- Sender to receiver information, if any
- IFSC code of the destination bank branch
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