Electronic Payment Systems – Banking Awareness

Dear Aspirants, Banking Awareness always plays in a different role in every bank exams. The competition levels of the competitive exams are increasing rapidly day by day. To tackle all such hurdles IBPS Guide providing study notes to you people on short term basis. Here today we are providing you with the study notes on Electronic Payment Systems in India for the Banking Awareness section.

Important Points About Electronic Payment Systems

Immediate Payment Service (IMPS):

  1. Immediate Payment Service (IMPS) is an instant real-time interbank electronic funds transfer system in India. IMPS offer an inter-bank electronic fund transfer service through mobile phones available 24×7, throughout the year including Sundays and bank holidays.
  2. Customers can transfer and receive funds through IMPS using their registered mobile number and Mobile Money Identifier (MMID) or Account number and IFSC code. This facility is provided by National Payments Corporation of India (NPCI) through its NFS switch. The participants for IMPS are Remitter, Beneficiary, Banks and NFS-NPCI.
  3. The IMPS was publicly launched on November 2010. Currently, there are 53 commercial banks, 101 Rural/District/Urban and cooperative banks, and 24 PPI signed up for the IMPS service.

Objectives of IMPS:

  • To enable bank customers to use mobile instruments as a channel for accessing their bank accounts and funds.
  • To subserve the goal of Reserve Bank of India’s (RBI) encouraging the retail payments in electronic way.
  • To facilitate mobile payment systems already introduced in India with the Reserve Bank of India Mobile Payment Guidelines 2008 to be inter-operable across banks and mobile operators in a safe and secured manner.

National Electronic Fund Transfer (NEFT):

  1. National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme. For being part of the NEFT funds transfer network, a bank branch has to be NEFT- enabled.
  2. There is no limit on either minimum or maximum on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to 50,000/- for cash-based remittances within India.
  3. The NEFT system takes advantage of the core banking system in banks. Accordingly, the settlement of funds between originating and receiving banks takes places centrally at Mumbai, whereas the branches participating in NEFT can be located anywhere across country.
  4. NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. From July 2017, settlements of fund transfer requests in NEFT system is done on half-hourly basis. There are twenty three half-hourly settlement batches run from 8 am to 7 pm on all working days of week.
  5. No charges to be levied on beneficiaries but charges only applicable for the remitter. The maximum transaction charges approved by RBI are given below:
  • up to 10,000 : Rs. 2.50 + GST
  • above 10,000 up to Rs. 1 lakh: Rs. 5 + GST
  • above 1 lakh and up to Rs. 2 lakhs: Rs. 15 + GST
  • above 2 lakhs: Rs. 25 + GST

Real Time Gross Settlement (RTGS):

  1. RTGS system is a fund transfer mechanism for transfer of money from one bank to another on a ‘real time’ and on ‘gross basis’, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis.
  2. This is the fastest possible money transfer system through the banking channel. Settlements in ‘Real time’ refers payment transaction is not subject to any waiting period. The transactions are settled as soon as they are processed.
  3. 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. The objective of RTGS systems by central banks throughout the world is to minimize risk in high-value electronic payment settlement systems.
  4. The RTGS service window for customer’s transactions is available to banks from 9 AM to 4.30 PM on week days and from 9 AM to 2 PM 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.

The maximum transaction charge on RTGS was divided into two categories:

a) Inward transactions: Free

b) Outward transactions:

  1. 2 to 5 lakh – 30.00 per transaction,
  2. Above 5 lakh – 55.00 per transaction.

Differences between IMPS, NEFT and RTGS:

Particulars IMPS NEFT RTGS
Working Time 24/7 8 AM to 7 PM(On week days)

8 AM to 1 PM(On Saturdays)

9 AM to 4.30 PM (On week days)

9 AM to 2 PM(On Saturdays)

Minimum Amount Re. 1 Re. 1 2 Lakhs
Maximum Amount 2 Lakhs No limit No limit
Charges on Transaction Applicable Applicable Applicable
Settlement Type One-on-One Batches One-on-One
Settlement Speed Immediate 2 hours (Subject to cut-off time) Immediate
Settlement Mode Online Both online and offline Both online and offline

Click Here for IBPS Clerk Mains Preparation Time Table (Full Schedule)

30 Days Study Plan for IBPS Clerk Mains 2017
Days Quantitative Aptitude Current Affairs Static GK / Banking Awareness Reasoning English
Day-1 Simplification, Wrong term in Number Series Sep 1-7 CMs and Governors / About RBI and its Responsibilities Coding and Decoding Errors in Articles and Preposition
Day-2 Average, Percentage and Partnership Sep 8-14 Country, Capital and Currency (1sthalf) – HQ of banks and Heads Relationship Errors in Nouns and Pronouns
Day-3 Ratio and Problems based on Ages Sep 15-21 Country, Capital and Currency (2ndhalf) – Types of Cheques Direction Sense Errors in Conjunction and Tenses
Day-4 Time & Work and Pipes & Cistern Sep 22-30 International Organisations and its HQ – Types of Accounts Syllogism Errors in If clauses and Relative Pronoun
Day-5 Time & Distance and Problems based on Trains Oct 1 – 7 National Parks (1st half) – Types of Cards Input and Output Errors in Adverb and Adjective
Day-6 Simple Interest and Compound Interest Oct 8 – 14 National Parks (2nd half)About RRBs Decision Making Errors in Active/Passive voice
Day-7 Profit and Loss Oct 15-21 Important Days with themes(2017) / About Payments Banks & NPCI Course of Action Errors in Comparison
Day-8 Probability and Mixture & Allegation Oct 22-31 City and Rivers with Origin / About NBFCs and Small Fin Banks Statements and assumption Errors in Direct/Indirect speech
Day-9 Boats and Streams Nov 1- 7 Power plants and Dams / About SEBI and IRDAI Linear Sitting arrangements Errors in Verbs
Day-10 Mensuration Nov 8-14 Important Lakes and Sanctuaries / About Credit Rating Agencies Circular Sitting arrangements Meaning for Idioms and Phrases (1st half)
Day-11 Data Interpretation (Table and Pie chart) Nov 15-21 Dance and Festival / Types of Loans and Negotiable Instruments Parallel Sitting Arrangements Meaning for Idioms and Phrases (2nd  half)
Day-12 Data Interpretation (Bar and Line Graph) Nov 22 – 30 2011 Census / About IMPS, NEFT, RTGS Puzzle Phrase replacement (Vocabulary based)
Day-13 Data Interpretation ( Caselet ) and Quadratic Equations Dec 1-7 Important Temples , Mosque-Church / About UPI and  BHIM Input and Output (New pattern) Single fillers
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