RTGS ( Real Time Gross Settlement )

RTGS - Real Time Gross Settlement

• RTGS stands for Real Time Gross Settlement

• RTGS system where there is continuous and real-time settlement of fund-transfers, individually on a transaction-by-transaction basis

• The funds settlement takes place in the books of the Reserve Bank of India (RBI), the payments are final and irrevocable

• The system is available on all days on 24x7x365 basis

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

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

• RTGS system does not accept future value dated transactions

• RBI limits transaction charges

• With effect from July 01, 2019, RBI has waived the processing charges levied by it for RTGS transactions

1. Inward transactions – Free

2. Outward transactions Rupees 2,00,000 to 5,00,000 not exceeding Rupees 25 (exclusive of tax, if any)

3. Above Rupees 5,00,000 not exceeding 50 (exclusive of tax, if any)

• RTGS transactions are processed continuously on a transaction-by-transaction basis throughout the day

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

• RTGS transactions transfers have no amount limit set by RBI

• RTGS transactions transfers have no amount limit set by RBI

• The minimum amount to be remitted through RTGS is Rupees 2,00,000/- with no upper limit

• With effect from July 01, 2019, RBI has waived the processing charges levied by it for RTGS transactions

• Unique Transaction Reference (UTR) number is a 22-character code used to uniquely identify a transaction in RTGS system 

Regional Rural Bank ( RRB )

• Regional Rural Bank ( RRB ) established on 2nd October 1975

• RRB Act passed in the year 1976

• RRB established as per the recommendation of Narasimhan committee

• To implement 20 point programme announced by former prime minister Indira Gandhi the central Govt decided  to start RRB in the Nation

• The share capital contribution by the central government , state government and sponcer bank in the ratio 50 : 15 : 35

• Central government contributed RRB through NABARD

• First RRB in India is Moradabad in UP

• Kerala Gramin Bank is the largest RRB in India 

• Number of RRB in India is 43

Full Form of Banking Terms

 1.Full form of NEFT 

National Electronic Fund Transfer

2. Full form of RTGS

Real Time Gross Settlement

3.Full form of CIBIL

Credit Information Bureau (India ) Limited

4. Full form of IFSC

Indian Financial System Code

5. Full Form of EMI

Equated Monthly Statement

6.Full form of MICR

Magnetic Ink Character Recognition

7.Full form of CASA

Current Account and Saving Account

8.Full form of NACH

National Automated Clearing House

9.Full form of MMID

Mobile Money Identifier

10.Full form of KYC

Know Your Customer

11.Full Form of KCC

Kissan Credit Card

12.Full form of OTP

One Time Password

13. Full form of NPCI

National Payments Corporation Of India

14. Full form of NBFC

Non Banking Financial Institution 

15. Full form of UPI

Unified Paymets Interface

16. Full Form of SWIFT

Society for World Wide Interbank Financial Telecommunication

17. Full form form GST 

Goods and Services Tax

18. Full form of NPA

Non Performing Asset

19. Full form of  TIN

Tax Information Network

20. Full form of   CVV

Card verification value

21. Full form of   SDR

Special Drawing Right

22. Full form of   IRDAI  

Insurance Regulatory and Development Authority of India

IFSC code

 Indian Financial System Code ( IFSC )

> IFSC provided by RBI

> IFSC helps to transfer money using RTGS NEFT or IMPS

> IFSC is a alpha numeric code

> IFSC having 11 characters

> First 4 digit in IFSC mention Bank 

> Last 6 digit indicate branch 

> Fifth digit of the IFSC is zero

Mudra bank

• Micro Unit Development and Refinance Agency Bank called as MUDRA bank 

• Mudra bank was set up under the Pradhan Mantri Mudra Yojna ( PMMY ) Scheme 

• The scheme launched by The prime minister of India Narendra Modi on 8th April 2015 

• The Loans are given by the commercial banks , RRBs , Small Finance Banks , NBFC'S . 

• The banks will classify it's client into 3 catagories 

1. Shishu 
2. Kishore
3. Tarun 

• Under Shishu covers loan upto Fifty thousand Rupees 

• In Kishore covering loans above Fifty thousand upto Five lakh 

• In Tarun covering loan above Five lakhs upto Ten Lakhs

SARFAESI ACT

 SARFAESI ACT 2002

• Full form of SARFAESI is  Securitization And Reconstruction of Financial Assets and Enforcement of Security Interest Act 

• SARFAESI ACT came into force on 21 June 2002 

• SARFAESI ACT related to loan recovery 

• SARFAESI ACT not applicable to loan  below rupees one lakh 

• SARFAESI Act does not apply to loan debt below 20% of the loan given

Relationship between Bank and Customer

Banker Customer Relationship

Deposit in Bank           - Debtor and Creditor

Loans and advances   - Creditor and Debtor

Collection of cheque   -  Agent and Principal

Payment of phone bills, Insurance etc - Agent and Principal 

Shares given for sale  -  Agent and Principal

Safe custody                 - Bailee and Bailor

Safe deposit locker     - Lessor and Lessee

Money deposited for a special purpose - Trustee and Beneficiary 

Important Acts in KCS Act

The Indian Contract Act                   -  1872 

The Indian Trust Act                         -  1882 

The Charitable Endorsement Act  -  1890 

Banking Regulation Act                   -  1949

Employee Provident Fund Act       -  1952

Kerala Money Lenders Act             -  1958

Payment of Bonus Act                     -  1965 

Payment of Gratuity Act                 -  1972

Consumer Protection Act               -  1986

KERALA STATE CO OPERATIVE BANK ( KSCB )

• State co operative bank is the federation of central co operative bank ( District co operative Bank )

• Kerala State Co operative Bank ( KSCB ) is the apex bank for short term credit in Kerala

• The headquarters of KSCB is co bank tower at Palayam in Thiruvananthapuram

• The first scheduled apex co operative Bank in India was KSCB

• KSCB is the only one scheduled co operative Bank in Kerala

• The principle State partnership maintained by KSCB

• The KSCB was formed in 1956 November 1

• RBI declared KSCB as a scheduled bank in 1966

• In 1972 RBI issued license to KSCB

• KSCB's Board of Directors include 21 members and it have a 9 member included exicutive committee

• KSCB has Three Regional offices ie Thiruvananthapuram, Ernakulam, Kozhikode

• KSCB have 20 branches

• The Managing Director is the Chief exicutive of KSCB

• Present MD of KSCB is Ms Rani George

• Main function of KSCB is to provide agricultural finance to District Co operative Banks

• The credit card issued by KSCB are Samridhi card and Co bank card

• The training institute of KSCB is ACSTI

• ACSTI known as Agricultural Credit Staff Training Institute

• ACSTI formed in the year 1992

• Headquarters of ACSTI is at Manvila in Thiruvananthapuram

• The first central bank affiliated to KSCB was Malabar Central Co operative Bank

• The maharaja of Travancore His Highness The Moolam Thirunal Ramavarma by his proclamation introduced the Travancore  Co operative Regulation Act in 1914

•  As per the Act the first co operative society, The Trivandrum Central  Co operative Bank registered in the year 1915

• The bank started functioning on 18 January 1916

• The initial working capital was one lakh

• In 1943 the bank was change in nature into The Travancore Central Co operative Bank

• In the year 1949 Travancore Cochin state was formed

• In 1954 the bank renamed as Travancore Cochin Co operative Bank

• On linguistic basis The Kerala State formed in the year 1956. Then the bank was also raised above the ground of State Co operative Bank and further it become The Kerala State Co operative Bank Ltd.

                                   

Inland Instruments

Inland instruments 

             A promissory note, Bill of  exchange, or Cheque drawn or made in India and made payable in or drawn upon any person resident in India shall be deemed to be an inland instrument

1. Promissory note

       Section 4 of Negotiable Instrument Act 1881  A promissory note is an instrument in writing  ( note being a bank note or a currency note ) containing an unconditional undertaking signed by the maker to pay a certain sum of money only to or to the order of certain person or to the bearer of the instrument 

2. Bill of Exchange 

          Section 5 of Negotiable Instrument Act 1881 a bill of exchange is an instrument in writing containing an unconditional order signed by the maker, directing a certain person to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument

3.  Cheque

           A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand