[Banking Awareness] Various Payments Systems In Banks In India

[Banking Awareness] Various Payments Systems In Banks In India 

Various Payments Systems

A payment system is any system used to settle financial transactions through the transfer of monetary value, and includes the institutions, instruments, people, rules, procedures, standards, and technologies that make such an exchange possible. A common type of payment system is the operational network that links bank accounts and provides for monetary exchange using bank deposits

#RTGS : Real Time Gross Settlement

• Minimum amount is Rs. 2 lacks and there is no limit to maximum amount.
• Transactions are settled as they happen

• RTGS is used by banks to settle their inter-bank account transactions as well as customer’s high value transactions.
• A ‘service charge’ is charged by the banks for outwards transactions (making an RTGS) and nil means 0 for inwards transactions (receiving an RTGS)

#NEFT : National Electronic Funds Transfer

• There is no limit to minimum/maximum transaction value.
• 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
• It is a nation-wide funds transfer system which facilitates fund transfer from any bank’s branch to any other bank’s branch.
• A ‘service charge’ is charged by the banks for outwards transactions (making an NEFT) and nil means 0 for inwards transactions (receiving an NEFT)

#AEPS : AADHAR Enabled Payment System

• The maximum amount of transaction per account per day is Rs.50, 000.
• A customer will have to register his/her AADHAR number to their existing bank account, provided their bank is AEPS enabled.
• Through AEPS, customer can withdraw or deposit cash, make balance enquiry, and transfer funds.
• 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.

#MTSS : Money Transfer Service Scheme

• A maximum of Rs.50, 000 can be remitted inwards as per the money value. And a maximum of 30 transactions per calendar year.
• Through this only inward remittances into India are permissible. 
• No outward remittance allowed.
•  It is a system of money transfer for transferring personal remittances from abroad to beneficiaries in India.

#Nepal Remittance Scheme:

• Maximum amount remittance is INR 50,000 and beneficiaries will receive in Nepalese Rupees.
• It is a cross-border one-way remittance facility scheme for remittance from India to Nepal.