Short Tricks to Remember Headquarters of Bank

A. यदि किसी बैंक के नाम में " Bank of India " आता है तो उसका मुख्यालय मुंबई होगा

1. BANK OF INDIA ==> MUMBAI

2. Central BANK OF INDIA ==> MUMBAI

3. Industrial Development BANK OF INDIA ==> MUMBAI

4. State BANK OF INDIA ==> MUMBAI

5. Union BANK OF INDIA ==> MUMBAI

6. Reserve BANK OF INDIA ==> MUMBAI

7. Securities and Exchange BOARD OF INDIA ==> MUMBAI

8. Dena Bank - ==> MUMBAI (देना बैंक को छोड़ कर)

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PNB Declared Interview List 2015 - Specialist Officer

Punjab National Bank (PNB) declared the interview list and schedule for recruitment for various posts of Specialist Officers. The interview is scheduled to be held on 15 July 2015.

The interview will be held for various Specialist Officer posts like Senior Manager (Company Secretary), Officer (Fire), Officer (Data Analyst), Officer (Industry) and Officer (Printing Technologist).

Click Here For Interview List

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Latest Abbreviation 2015

MUDRA - Micro Units Development and Refinance Agency

NITI – National Institution for Transforming India

PRAGATI – Pro-Active Governance and Timely Implementation

PaHaL – Pratyaksha Hastaantarit Laabh

HRIDAY – Heritage Development and Augmentation Yojana

EEU – Eurasian Economic Union

NSM – National Supercomputing Mission

AMRUT – Atal Mission for Rejuvenation and Urban Transformation

MRT – Mitochondrial Replacement Therapy

BOSS – Bharat Operating System Solutions

NMET – National Mineral Exploration Trust

UPI – Unified Payment Interface

TLCs – Tech Learning Centres

JAM – Jan Dhan, Aadhar and Mobile

PSF – Price Stabilization Fund

POTUS – President of the United States

Ind AS – Indian Accounting Standards

AVAM – AAP Volunteer Action Manch

NERPAP – National Electoral Roll Purification and Authentication Programme

IRNSS – Indian Regional Navigation Satellite System

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Definition of Micro Finance Institution (MFI)

A type of banking service that is provided to unemployed or low-income individuals or groups who would have no other means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing a means of saving money, borrowing money and insurance.

One element of that is the opening of bank accounts under the Prime Minister’s Jan Dhan Yojana is being steered by the RBI, while the MFIs will be controlled by the MUDRA Bank under the finance ministry. Prime Minister Narendra Modi is scheduled to launch the proposed agency with a corpus of Rs 20,000 crore on April 8.

Micro Finance Institution (MFI) was created along with a regulatory framework governing the same. The Bank has been receiving representations from NBFCs that are primarily into micro financing, conveying difficulties in complying with the framework. 

Although most modern microfinance institutions operate in developing countries, the rate of payment default for loans is surprisingly low - more than 90% of loans are repaid. 

Like conventional banking operations, microfinance institutions must charge their lenders interests on loans. While these interest rates are generally lower than those offered by normal banks, some opponents of this concept condemn microfinance operations for making profits off of the poor.

The World Bank estimates that there are more than 500 million people who have directly or indirectly benefited from microfinance-related operations. 

Microfinance sector has grown rapidly over the past few decades. Nobel Laureate Muhammad Yunus is credited with laying the foundation of the modern MFIs with establishment of Grameen Bank, Bangladesh in 1976. Today it has evolved into a vibrant industry exhibiting a variety of business models. Microfinance Institutions (MFIs) in India exist as NGOs (registered as societies or trusts), Section 25 companies and Non-Banking Financial Companies (NBFCs). Commercial Banks, Regional Rural Banks (RRBs), cooperative societies and other large lenders have played an important role in providing refinance facility to MFIs. Banks have also leveraged the Self-Help Group (SHGs) channel to provide direct credit to group borrowers.

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SBI SO 2015 16 - Link Activate

Dear Readers,

State Bank of India has released the notification regarding Recruitment of Specialist Cadre Officers (2015-16).

Important Date:

online ragitration start from : 08- Apr - 2015

Closing Date : 27- Apr -2015

Payment fee On-line : 08- Apr - 2015 To 27- Apr -2015

Downloading call letter date : After 01- June - 2015

Date of Online test : 14- June - 2015

1. Click Here to Apply Online
2. Click Here to View Official Notification (English)
3. Click Here to View Official Notification (Hindi)

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New Recruitment Structure of SBI - Coming Soon

State Bank of India is ready to witness some major changes in its recruitment structure in near future.

As per SBI Chairman Arundhati Bhattacharya, the number of recruitment at the entry level will be based on the number of retirement in that particular year. She announced that the bank would make a schedule, so that everybody knows when the examinations will take place in the SBI group and for which kind of hiring.

In concern to hiring of spurts, Bhattacharya said that the bank will not hire spurts anymore as it was found inefficient. From now on the steady stream of people entering the organization will be easy to deal with as they can be properly trained and can work on board.

Campus recruitment is also on the cards of the Bank and the Bank is working on to get a bypass on 2013 court ruling banning state run banks from campus recruitment at India's elite universities. Bhattacharya was quoted saying that, "We've flagged to the government that at least a portion of our recruitment we should be able to do from campuses. The government has assured us they are working on this."

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Central Bank Autonomy

Research has already established that there are significant benefits for macroeconomic performance from central bank autonomy (CBA). CBA helps countries achieve lower average inflation, cushions the impact of political cycles on economic cycles, enhances financial system stability, and boosts fiscal discipline without any real additional costs or

sacrifices in terms of output volatility or reduced economic growth.

Now an IMF paper that looks at trends over time in CBA of 163 central banks representing 181 countries (India is not included in the sample) delves deeper into the issue, more specifically into two aspects of such autonomy: political and economic autonomy.

Political autonomy is defined as the ability of central banks to select the final objectives of monetary policy, based on eight criteria: (1) governor is appointed without government involvement; (2) governor is appointed for more than five years; (3) board of directors is appointed without government involvement; (4) board is appointed for more than five years; (5) there is no mandatory participation of government representative(s) in the board; (6) no government approval is required for formulation of monetary policy; (7) central bank is legally obliged to pursue monetary stability as one of its primary objectives; and (8) there are legal provisions that strengthen the central bank's position in the event of a conflict with the government.

Economic autonomy assesses the central bank's operational autonomy on the basis of seven criteria: (1) there is no automatic procedure for the government to obtain direct credit from the central bank; (2) when available, direct credit facilities are extended to the government at market interest rates; (3) this credit is temporary; (4) and for a limited amount; (5) the central bank does not participate in the primary market for public debt; (6) the central bank is responsible for setting the policy rate; and (7) the central bank has no responsibility for overseeing the banking sector or shares responsibility.

Assessing the performance of the sample group of central banks against these two yardsticks, the paper concludes: Average CBA scores have increased significantly over the last couple of decades: overall CBA (political and economic autonomy) has about doubled, but the economic element of autonomy is significantly ahead of the political component.

Advanced economies started off from relatively high levels of autonomy in the late 1980s but continued to strengthen their CBA in the subsequent years. Since their economic autonomy was already quite high, most progress has been towards boosting the political autonomy. However, the political component of autonomy still lags behind the scores for economic autonomy.

Among emerging markets, overall CBA has more than doubled over time and has surpassed CBA, typical in the advanced countries in the late 1980s. Measures of economic and political autonomy show similar levels of improvement, with economic autonomy remaining higher than political autonomy.

In developing countries, political autonomy of central banks has improved only marginally and remains low. The good thing, however, is that economic CBA has increased significantly over the past couple of decades.

According to the authors, political autonomy is much harder to win than economic autonomy. In developing countries, governments often continue to be involved in the selection of central bank boards and tenures tend to be short; the government is generally represented on the board and central banks have a limited legal protection in the event of a conflict with the government.

The four main principles of any legal framework for CBA include:

Setting price stability as the primary objective of monetary policy

Governments may have several competing economic objectives, particularly in the short term. Accordingly, they may tend to ignore the medium-term inflationary effects of an expansionary monetary policy. This time-inconsistency causes a credibility problem. Entrusting price stability to an autonomous agency ( i.e., the central bank) helps strengthen credibility.

Curtailing direct lending to governments

Most central banks have provisions in place that limit their ability to provide unrestricted credit to the government. Today, almost all central bank laws stipulate that lending to the government, if allowed at all, cannot be automatic, and must be temporary, subject to quantitative limits and at market-related interest rates.

Ensuring full autonomy for setting the policy rate

Most central banks have been granted full autonomy for setting their policy rate. At the most basic level, this condition is necessary for the central bank to pursue its goals. A corollary to that consensus view is the desire to ensure that the central bank has full autonomy for the design of its monetary policy instruments, i.e., the tools to achieve the operational target of monetary policy.

Ensuring no government involvement in policy formulation

No government approval should be required for the formulation of monetary policy. A corollary to that principle is the existence of procedures to resolve conflicts between the central bank and the government.

With the exception of the second — curtailing direct lending to government — we do not make the grade on any of the remaining counts. No wonder that differences between the government and the RBI will increasingly see the central bank on its back foot, with unhappy long-term consequences for the economy?

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Banking Awareness Quiz For BOB

1. Currency Swap is an instrument to manage—

(A) Currency risk

(B) interest rate risk

(C) currency and interest rate risk

(D) cash flows in different currencies

(E) All of the above

2. ‘Sub-prime’ refers to—

(A) lending done by banks at rates below PLR

(B) funds raised by the banks at sub-Libor rates

(C) Group of banks which are not rated as prime banks as per Banker’s Almanac

(D) lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards

(E) All of the above

3. Euro Bond is an instrument—

(A) issued in the European market

(B) issued in Euro Currency

(C) issued in a country other than the country of the currency of the Bond

(D) All of the above

(E) None of these

4. Money Laundering normally involves—

(A) placement of funds

(B) layering of funds

(C) integration of funds

(D) All of (A), (B) and (C)

(E) None of (A), (B) and (C)

5. The IMF and the World Bank were conceived as institutions to

(A) strengthen international economic co-operation and to help create a more stable and prosperous global economy

(B) IMF promotes international monetary cooperation

(C) The World Bank promotes long term economic development and poverty reduction

(D) All of (A), (B) and (C)

(E) None of (A), (B) and (C)

6. Capital Market Regulator is—

(A) RBI

(B) IRDA

(C) NSE

(D) BSE

(E) SEBI

7. In the term BRIC, R stands for—

(A) Romania

(B) Rajithan

(C) Russia

(D) Regulation

(E) None of these

8. FDI refers to—

(A) Fixed Deposit Interest

(B) Fixed Deposit Investment

(C) Foreign Direct Investment

(D) Future Derivative Investment

(E) None of these

9. What is Call Money ?

(A) Money borrowed or lent for a day or over night

(B) Money borrowed for more than one day but upto 3 days

(C) Money borrowed for more than one day but upto 7 days

(D) Money borrowed for more than one day but upto 14 days

(E) None of these

10. Which is the first Indian company to be listed in NASDAQ ?

(A) Reliance

(B) TCS

(C) HCL

(D) Infosys

(E) None of these

Answers :-

Q. 1 (D)	Q. 2 (D)	Q. 3 (C)	Q. 4 (D)	Q. 5 (D)
Q. 6 (E)	Q. 7 (C)	Q. 8 (C)	Q. 9 (A)	Q. 10 (D)

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Banking Awareness Quiz For BOB Exam

1. RBI’s open market operation transactions are carried out with a view to regulate—

(A) Liquidity in the economy

(B) Prices of essential commodities

(C) Inflation

(D) Borrowing power of the banks

(E) All the above

2. When more than one banks are allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as—

(A) Participation

(B) Consortium

(C) Syndication

(D) Multiple banking

(E) None of these

3. Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy means —

(A) Sale or purchase of Govt. securities

(B) Issuance of different types of bonds

(C) Auction of gold

(D) To make available direct finance to borrowers

(E) None of these

4. The bank rate means—

(A) Rate of interest charged by commercial banks from borrowers

(B) Rate of interest at which commercial banks discounted bills of their borrowers

(C) Rate of interest allowed by commercial banks on their deposits

(D) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks

(E) None of these

5. What is an Indian Depository Receipt ?

(A) A deposit account with a Public Sector Bank

(B) A depository account with any of Depositories in India

(C) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company

(D) An instrument in the form of deposit receipt issued by Indian depositories

(E) None of these

6. An instrument that derives its value from a specified underlying (currency, gold, stocks etc.) is known as—

(A) Derivative

(B) Securitisation Receipts

(C) Hedge Fund

(D) Factoring

(E) Venture Capital Funding

7. Fiscal deficit is—

(A) total income less Govt. borrowing

(B) total payments less total receipts

(C) total payments less capital receipts

(D) total expenditure less total receipts excluding borrowing

(E) None of these

8. In the Capital Market, the term arbitrage is used with reference to—

(A) purchase of securities to cover the sale

(B) sale of securities to reduce the loss on purchase

(C) simultaneous purchase and sale of securities to make profits from price

(D) variation in different markets

(E) Any of the above

9. Reverse repo means—

(A) Injecting liquidity by the Central Bank of a country through purchase of Govt. securities

(B) Absorption of liquidity from the market by sale of Govt. securities

(C) Balancing liquidity with a view to enhancing economic growth rate

(D) Improving the position of availability of the securities in the market

(E) Any of the above

10. The stance of RBI monetary policy is—

(A) inflation control with adequate liquidity for growth

(B) improving credit quality of the Banks

(C) strengthening credit delivery mechanism

(D) supporting investment demand in the economy

(E) Any of the above

Answer:-

Q. 1 (E)	Q. 2 (B)	Q. 3 (A)	Q. 4 (D)	Q. 5 (C)
Q. 6 (C)	Q. 7 (D)	Q. 8 (C)	Q. 9 (A)	Q. 10 (E)

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Purvanchal Gramin Bank Recruitment 2015

Purvanchal Gramin Bank Recruitment 2015 – Apply Online for 242 Officer & Office Asst Posts: Purvanchal Gramin Bank, Gorakhpur has announced notification for the recruitment of 242 Officer Scale-I & Office Assistant vacancies. Candidates who have been declared qualified in the Common written Examination for RRB’s III conducted by IBPS in September/October- 2014 and have valid score card are eligible to apply for these posts. Eligible candidates can apply online from 17-03-2015 to 31-03-2015. For more details like age limit, qualification & how to apply are given below.

Purvanchal Gramin Bank Vacancy Details:

Total No.of Posts: 242

Name of the Post:

1. Officer Scale-I: 77 posts

2. Office Assistant: 165 posts

Important Dates:

Starting Date to Apply Online: 17-3-2015.

Last Date to Apply Online: 31-03-2015.

Click here for Recruitment Advt

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Banking Awareness For Upcoming Exam

1).In Banking terminology, NPA means

A) Non-Promise Account

B) Non-Personal Accout

C) Non-Performing Asset

D) Net-performing Asset

E) None of these

2).Which of the following schemes has been launched for providing health services in rural areas?

A) Operation Flood

B) Look East

C) SJSRY

D) ASHA

E) None of these

3).Which of the following schemes has been launched for the school-going children?

A) Lok Jumbish

B) Mid-Day Meal

C) AYUSH

D) SarvaShikshaAbhiyan

E) None of these

4).‘Sugam’ is a scheme launched for

A) Small tax payers

B) Pensioners getting old age pension

C) Big corporate houses

D) Getting all sorts of permission

E) None of these

5).What is the full form of ‘ULIP’, the term which was in the news recently?

A) Universal Life & Investment Plan

B) Unit Loan & Investment Plan

C) Unit Linked Insurance Plan

D) Uniformly Loaded Investment Plan

E) None of these

6).Which of the following is NOT a banking related term?

A) Radiation

B) Outstanding Amount

C) Explicit Guarantee

D) Benchmark Prime Lending Rate

E) None of these

7).Insurance service provided by various banks is commonly known as ______

A) Investment banking

B) Portfolio management

C) Merchant banking

D) Bancassurance

E) None of these

8).Which from the following is NOT true when the interest rate in the economy goes up?

A) Saving increases

B) Lending decreases

C) Cost of production increases

D) Return on capital increases

E) None of these

9).Rate of interest is determined by:

A) The rate of return on the capital invested

B) Central Government

C) Liquidity preferences

D) Commercial Banks

E) None of these

10).Which bank was earlier called the “Imperial Bank of India”?

A) RBI

B) SBI

C) UBI

D) PNB

E) None of these

Q. 1 (C)	Q. 2 (D)	Q. 3 (B)	Q. 4 (A)	Q. 5 (C)
Q. 6 (A)	Q. 7 (D)	Q. 8 (D)	Q. 9 (D)	Q. 10 (B)

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The Main Differences Between A Cheque And A Demand Draft

The following are the main differences between a Cheque and a demand draft:

1. A Cheque is issued by an individual, whereas a demand draft is issued by a bank.
2. A cheque is drawn by an account holder of a bank, whereas a draft is drawn by one branch of a bank on another branch of the same bank.
3. In a cheque, the drawer and the drawee are different persons. But in a draft both the drawer and the drawee are the same bank.
4. A Cheque can be dishonored for want of sufficient balance in the account. Whereas a draft cannot be dishonored. Hence there is certainty of the payment in the case of a demand draft.
5. Payment of a cheque can be stopped by the drawer of the cheque, whereas, the payment of a draft cannot be stopped.
6. A cheque is defined in the Negotiable Instrument Act, 1881, whereas a demand draft has not be precisely defined in the NI Act.
7. A cheque can be made payable either to a bearer or order. But a demand draft is always payable to order of a certain person.

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Sixth Bi-monthly Monetary Policy Review, 2014-15 on February

Monetary and Liquidity Measures

On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to:

keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.75 per cent;

keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net

demand and time liabilities (NDTL);

reduce the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 22.0 per cent to 21.5 per cent of their NDTL with effect from the fortnight beginning February 7, 2015;

replace the export credit refinance (ECR) facility with the provision of system level liquidity with effect from February 7, 2015;

continue to provide liquidity under overnight repos of 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and

continue with daily variable rate term repo and reverse repo auctions to smooth liquidity.

Consequently, the reverse repo rate under the LAF will remain unchanged at 6.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 8.75 per cent.

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TYPES OF CHEQUES

1. Order Cheque : A cheque which is payable to a particular person or his order is called an order cheque.

2. Bearer Cheque : A cheque which is payable to a person whosoever bears, is called bearer cheque.

3. Blank Cheque : A cheque on which the drawer puts his signature and leaves all other columns blank is called a blank cheque.

4. Stale Cheque : The cheque which is more than three months old is a stale cheque.

5. Multilated Cheque : If a cheque is torn into two or more pieces, it is termed as mutilated cheque.

6. Post Dated Cheque : If a cheque bears a date later than the date of issue, it is termed as post dated cheque.

7. Open Cheque : A cheque which has not been crossed is called an open cheque. Even if a cheque is crossed and subsequently the drawer has cancelled the crossing at the request of the payee and af?xes his full signature with the words “crossing cancelled pay cash”, it becomes an open cheque.

8. Crossed Cheque : A cheque which carries too parallel transverse lines across the face of the cheque with or without the words “I and co”, is said to be crossed.

9. Gift Cheques : Gift cheques are used for offering presentations on occasions like birthday, weddings and such other situations. It is available in various denominations.

10. Traveller’s Cheques : It is an instrument issued by a bank for remittance of money from one place to another.

11.Self cheques : A self cheque is written by the account holder as pay self to receive the money in the physical form from the branch where he holds his account.

12.Bankers Cheque : A banker's cheque or bankers Draft is a cheque (or check) where the funds are withdrawn directly from a bank's funds, not from an individual's account.

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Statement By RBI, Governor On Monetary Policy

Since July 2014, inflationary pressures (measured by changes in the consumer price index) have been easing. The path of inflation, while below the expected trajectory, has been consistent with the assessment of the balance of risks in the Reserve Bank’s bi-monthly monetary policy statements. To some extent, lower than expected inflation has been enabled by the sharper than expected decline in prices of vegetables and fruits since September, ebbing price pressures in respect of cereals and the large fall in international commodity prices, particularly crude oil. 

Crude prices, barring geo-political shocks, are expected to remain low over the year. Weak demand conditions have also moderated inflation excluding food and fuel, especially in the reading for December. Finally, the government has reiterated its commitment to adhering to its fiscal deficit target.

These factors have significantly reduced the momentum of inflation, compensating for the widely anticipated ending of favourable base effects. Households’ inflation expectations have adapted, and both near-term and longer-term inflation expectations have eased to single digits for the first time since September 2009. Inflation outcomes have fallen significantly below the 8 per cent targeted by January 2015. On current policy settings, inflation is likely to be below 6 per cent by January 2016.

These developments have provided headroom for a shift in the monetary policy stance. It may be recalled that the fifth bi-monthly monetary policy statement of December had stated that “if the current inflation momentum and changes in inflation expectations continue, and fiscal developments are encouraging, a change in the monetary policy stance is likely early next year, including outside the policy review cycle”. In its public interactions, the RBI had committed to initiate the process of monetary easing as soon as data indicated that medium term inflationary targets would be met. Keeping this commitment in mind, it has been decided to:

• Reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 8.0 per cent to 7.75 per cent with immediate effect;
• Keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL);
• Continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and continue with daily variable rate repos and reverse repos to smooth liquidity.
• Consequently, the reverse repo rate under the LAF stands adjusted to 6.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 8.75 per cent with immediate effect.

The fifth bi-monthly monetary policy statement also stated that once the monetary policy stance shifts, subsequent policy actions will be consistent with this stance. Key to further easing are data that confirm continuing disinflationary pressures. Also critical would be sustained high quality fiscal consolidation as well as steps to overcome supply constraints and assure availability of key inputs such as power, land, minerals and infrastructure. The latter would be needed to ensure that potential output rises above the projected pick-up in growth in coming quarters so as to contain inflation.

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More Information About RTGS

Q1. What is RTGS System?

Ans. The acronym 'RTGS' stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting). 'Real Time' means the processing of instructions at the time they are received rather than at some later time; 'Gross Settlement' means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.

Q2. How RTGS is different from National Electronics Funds Transfer System (NEFT)?

Ans. NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place with all transactions received till the particular cut-off time. These transactions are netted (payable and receivables) in NEFT whereas in RTGS the transactions are settled individually. For example, currently, NEFT operates in hourly batches. [There are twelve settlements from 8 am to 7 pm on week days and six settlements from 8 am to 1 pm on Saturdays.] Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time Contrary

to this, in the RTGS transactions are processed continuously throughout the RTGS business hours.

Q3. Is there any minimum / maximum amount stipulation for RTGS transactions?

Ans. The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ` 2 lakh. There is no upper ceiling for RTGS transactions.

Q4. What is the time taken for effecting funds transfer from one account to another under

RTGS?

Ans. Under normal circumstances the beneficiary branches are expected to receive 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 30 minutes of receiving the funds transfer message.

Q5. Would the remitting customer receive an acknowledgement of money credited to the beneficiary's account?

Ans. The remitting bank receives a message from the Reserve Bank that money has been credited to the receiving bank. Based on this the remitting bank can advise the remitting customer through SMS that money has been credited to the receiving bank.

Q6. Would the remitting customer get back the money if it is not credited to the beneficiary's account? When?

Ans. Yes. Funds, received by a RTGS member for the credit to a beneficiary customer’s account, will be returned to the originating RTGS member within one hour of the receipt of the payment

at the PI of the recipient bank or before the end of the RTGS Business day, whichever is earlier, if it is not possible to credit the funds to the beneficiary customer’s account for any reason e.g. account does not exist, account frozen, etc. Once the money is received back by the remitting bank, the original debit entry in the customer's account is reversed.

Q7. Till what time RTGS service window is available?

Ans. The RTGS service window for customer's transactions is available to banks from 9.00 hours to 16.30 hours on week days and from 9.00 hours to 14:00 hours on Saturdays for settlement at the RBI end. However, the timings that the banks follow may vary depending on the customer timings of the bank branches.

Q8. What about Processing Charges / Service Charges for RTGS transactions?

Ans With a view to rationalize the service charges levied by banks for offering funds transfer through RTGS system, a broad framework has been mandated as under:

a) Inward transactions – Free, no charge to be levied.

b) Outward transactions – ` 2 lakh to ` 5 lakh - not exceeding ` 30.00 per transaction; Above ` 5 lakh – not exceeding ` 55.00 per transaction.

Q9. What is the essential information that the remitting customer would have to furnish to a bank for the remittance to be effected?

Ans. The remitting customer has to furnish the following information to a bank for initiating a

RTGS remittance:

1.   Amount to be remitted

2.   Remitting customer’s account number which is to be debited

3.   Name of the beneficiary bank and branch

4.   The IFSC Number of the receiving branch

5.   Name of the beneficiary customer

6.   Account number of the beneficiary customer

7.   Sender to receiver information, if any

Q10. How would one know the IFSC number of the receiving branch?

Ans. The beneficiary customer can obtain the IFSC code from his bank branch. The IFSC code is also available on the cheque leaf. The list of IFSCs is also available on the RBI website . This code number and bank branch details can be communicated by the beneficiary to the remitting customer.

Q11. Do all bank branches in India provide RTGS service?

Ans. No. All the bank branches in India are not RTGS enabled. Presently, there are more than

100,000 RTGS enabled bank branches. The list of such branches is available on RBI website

Q12. Is there any way that a remitting customer can track the remittance transaction?

Ans It would depend on the arrangement between the remitting customer and the remitting bank. Some banks with internet banking facility provide this service. Once the funds are credited to the account of the beneficiary bank, the remitting customer gets a confirmation from his bank either by an e-mail or SMS. Customer may also contact RTGS / NEFT Customer Facilitation Centres

of the banks, for tracking a transaction.

Q13. Whom do I can contact, in case of non-credit or delay in credit to the beneficiary account?

Ans. Contact your bank / branch. If the issue is not resolved satisfactorily, complaint may be lodged to the Customer Service Department of RBI at - The Chief General Manager Reserve Bank of India Customer Service Department

1st Floor, Amar Building, Fort

Mumbai – 400 001 Or send email

Q14. How can a remitting customer know whether the bank branch of the beneficiary accepts remittance through RTGS?

Ans. For a funds transfer to go through RTGS, both the sending bank branch and the receiving bank branch would have to be RTGS enabled. The lists are readily available at all RTGS enabled branches. Besides, the information is available at RBI website. Considering that more than 110,000 branches a more than 30,000 cities / towns / taluka places are covered under the RTGS system, getting this information would not be difficult.

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