Ans. The acronym 'RTGS' stands for Real Time Gross Settlement, which can be explained as a system where there is continuous and real-time settlement of fund-transfers, individually on a transaction by transaction basis (without netting). 'Real Time' means the processing of instructions at the time they are received; 'Gross Settlement' means that the settlement of funds transfer instructions occurs individually.

Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.

Ans. RTGS is available 24x7x365 with effect from December 14, 2020.

Ans. NEFT is an electronic fund transfer system in which the transactions received up to a particular time are processed in batches. Contrary to this, in RTGS, the transactions are processed continuously on a transaction by transaction basis throughout the day.

Ans. RTGS offers many advantages for funds transfer:

• It is a safe and secure system for funds transfer.

• RTGS transactions / transfers have no amount cap set by RBI.

• The system is available on all days on 24x7x365 basis. There is real time transfer of funds to the beneficiary account.

• The remitter need not use a physical cheque or a demand draft.

• The beneficiary need not visit a bank branch for depositing the paper instruments.

• The beneficiary need not be apprehensive about loss / theft of physical instruments or the likelihood of fraudulent encashment thereof.

• Remitter can initiate the remittances from his / her home / place of work using internet banking, if his / her bank offers such service.

• The transaction charges have been capped by RBI.

• The transaction has legal backing.

Ans. The customer can contact his / her bank / branch if there is an issue of delay / non-credit to the beneficiary account. The details of Customer Facilitation Centre of member banks are also available on the website of RBI at https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2070.

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 must credit the beneficiary's account within 30 minutes of receiving the funds transfer message.

Ans. In case of any delay in returning the failed payment, the originating customer is eligible to receive compensation at current repo rate plus 2%.

Ans. The FAQs on “Legal Entity Identifier (LEI) for Large Value Transactions in Centralised Payment Systems” on the RBI website at https://www.rbi.org.in/Scripts/FAQView.aspx?Id=140 can be referred to.