Tuesday, 28 June 2016

Various Payments Systems In Banks In India (Banking Awareness Study Notes for SBI PO Exam)

Dear mm expert readers. Today we are here with in a series of providing useful material for Banking Awareness section Study Notes for SBI PO (Various Payments Systems In Banks In India) various banking exams. (Must Read Banking Awareness Quiz and Banking Awareness Study notes here).

Last Update : 25th July 2016 (25.07.2016)

Today we are explaining various payment systems available in Banks in a very simple language and learning approach. These all are very imp. and expected questions in upcoming bank jobs 2016-2017.

Various Payments Systems In Banks In India (PDF -Download)

1RTGS : Real Time Gross Settlement
  1. It is a centralized payment system through which interbank payment
    instructions are processed and settled, on GROSS basis, in REAL TIME.
  2. Which simply means, that the transactions are settled as they happen?
  3. Minimum amount is Rs. 2 lacks and there is no limit to maximum amount.
  4. A ‘service charge’ is charged by the banks for outwards transactions (making an RTGS) and nil for inwards transactions (receiving an RTGS).
  5. RTGS is used by banks to settle their inter-bank account transactions as well as customer’s high value transactions.
  6. It uses INFINET (Indian Financial Network) platform to operate
2NEFT : National Electronic Funds Transfer
  1. It is a nation-wide funds transfer system which facilitates fund transfer from any bank’s branch to any other bank’s branch.
  2. The difference between NEFT and RTGS is that NEFT settlements happen in batches, and on net settlement basis. Whereas RTGS is real time and gross settlement.
  3. 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.
  4. There is no limit to minimum/maximum transaction value.
  5. NEFT cannot be used for foreign remittances.
3AEPS : AADHAR Enabled Payment System
  1. It is a payment system which uses AADHAR card number and an individual’s online UIDAI authentication, which are linked to a customer’s Bank account.
  2. A customer will have to register his/her AADHAR number to their existing bank account, provided their bank is AEPS enabled.
  3. Through AEPS, customer can withdraw or deposit cash, make balance enquiry, and transfer funds.
  4. The maximum amount of transaction per account per day is Rs.50, 000.
  5. These transactions are normally conducted by Business Correspondents (BCs) service centers.
4MTSS : Money Transfer Service Scheme
  1. It is a system of money transfer for transferring personal remittances from abroad to beneficiaries in India.
  2. Through this only inward remittances into India are permissible. No outward remittance allowed.
  3. A maximum of Rs.50, 000 can be remitted inwards as per the money value. And a maximum of 30 transactions per calendar year.
5Nepal Remittance Scheme:
  1. It is a cross-border one-way remittance facility scheme for remittance from India to Nepal.
  2. Maximum amount remittance is INR 50,000 and beneficiaries will receive in Nepalese Rupees.

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