VARIOUS PAYMENTS SYSTEMS IN BANKS IN INDIA

1. RTGS: Real Time Gross Settlement

 It is a centralized payment system through which inter bank payment instructions are processed and settled, on GROSS basis, in REAL TIME.

 Which simply means, that the transactions are settled as they happen.

 Minimum amount is Rs. 2 lacs and there is no limit to maximum amount.

 A ‘service charge’ is charged by the banks for outwards transactions (making an RTGS) and nil for inwards transactions (receiving an RTGS).

 RTGS is used by banks to settle their inter-bank account transactions as well as customer’s high value transactions.

 It uses INFINET (Indian Financial Network) platform to operate.

2. NEFT: National Electronic Funds Transfer

 It is a nation-wide funds transfer system which facilitates fund transfer from any bank’s branch to any other bank’s branch.

 The difference between NEFT and RTGS is that NEFT settlements happen in batches, and on net settlement basis. Where as RTGS is real time and gross settlement.

 Net Settlement means, that transaction pertaining to a particular bank branches are kept on hold and accumulated and then processed together in a batch with the ‘net’ amount, which would either be incoming or outgoing transfer.

 There is no limit to minimum/maximum transaction value.

 NEFT cannot be used for foreign remittances.

3. AEPS: AADHAR Enabled Payment System

 It is a payment system which uses Aadhar card number and an individuals online UIDAI authentication, which are linked to a customers Bank account.

 A customer will have to register his/her Aadhar number to their existing bank account, provided their bank is AEPS enabled.

 Through AEPS, customer can withdraw or deposit cash, make balance enquiry, and transfer funds.

 The maximum amount of transaction per account per day is Rs.50,000.

 These transactions are normally conducted by Business Correspondents (BCs) service centres.

4. MTSS: Money Transfer Service Scheme

 It is a system of money transfer for transferring personal remittances from abroad to beneficiaries in India.

 Through this only inward remittances into India are permissible. No outward remittance allowed.

 A maximum of Rs.50,000 can be remitted inwards as per the money value. And a maximum of 30 transactions per calendar year.

5. Nepal Remittance Scheme:

 It is a cross-border one-way remittance facility scheme for remittance from India to Nepal.

 Maximum amount remittance is INR 50,000 and beneficiaries will receive in Nepalese Rupees.