TO STUDY ABOUT VARIOUS TYPES OF MODE OF PAYMENT

MADE BY:- RACHANA SINGH

OBJECTIVES
To Study in brief about various modes of payment. To study in brief about RTGS & NEFT, purpose of RTGS & NEFT, charges of RTGS & NEFT. To Study about benefits of RTGS & NEFT. To compare the different modes of payment with RTGS & NEFT.

 RTGS 'Real Time' refers to the process of instructions that are executed at the time they are received, rather than at some later time. On the other hand "Gross Settlement" means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). NEFT The NEFT is a nationwide payment system facilitating one-to-one funds transfer. Under this system, 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 system.

PURPOSE OF RTGS & NEFT

RTGS
Quicker settlement cycles Assured finality of settlement Intra Day Credit/Liquidity Reduced operational risk of fraud and loss of cheques Secure transactions Controlled flow of transactions Wider day time window for collections / payments Cuts across geographical boundaries NEFT The NEFT facilitates the transfer of funds electronically from one customers account to anothers account between NEFT participant bank branches in India. It offers an efficient, secure, economic, reliable and expeditious solution of funds transfer. The NEFT system, in contrast with RTGS System, settles in batches at different intervals. While RTGS is used for high value transactions (above INR 2 Lakh), NEFT can be used for any amount, inclusive of paisa component.

CONTENT OF RTGS & NEFT

The IFSC code of the receiving branch Remitting Customers Account number which is to be debited Amount to be remitted Name of the beneficiary bank Name and Account number of the beneficiary customer Sender to receiver information
The beneficiary customer can receive the IFSC code from his bank branch and it is also printed on the cheque leaf. Before the transaction, remitting customer can get IFSC code number and bank branch from the beneficiary. RBI has also made available the list of IFSC codes on its website.

SERVICE CHARGES FOR NEFT & RTGS

FOR NEFT

Sr.N Items o 1. NEFT

Transaction Slab

Charges

Up to 10,000 Up to 1.00 lac Above 1.00 lac to 2.00 lacs Above 2.00 lacs

2.50 5.00 15.00 25.00

FOR RTGS

Time of Settlement at the RBI

Transaction Slab

Charges

From 9:00 Hours

To 12:00 Hours 2.00 lacs to 5.00 lacs Above 5.00 lacs 25 51 26 52

After 12:00 Hours

15:30 Hours

2.00 lacs to 5.00 lacs Above 5.00 lacs

After 15:30
Hours

16:30 Hours
(on week days)

2.00 lacs to 5.00 lacs

Above 5.00 lacs

31
56

BENEFITS OF RTGS & NEFT

Avoid long waiting period No need of physical cheque/Demand draft Reduces time/cost/effort Reduces loss of documents in transit. No need to send your representative for collection of B/L instead avail E-B/L facility. Print B/Ls at your office by availing E-B/L facility

RESEARCH
research can be defined as the meticulous and methodical investigation into a specific area. It has significant importance in various fields, such as business, economics, and politics. Research is conducted to serve a diverse range of purposes, such as enhancing the knowledge of the researcher, developing theories, and revising facts. In addition, it helps in identifying the root cause of a problem and devising innovative ways to solve it. DESCRIPTIVE RESEARCH- Descriptive research includes surveys and fact- finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. DATA COLLECTION PRIMARY DATA Interview SECONDARY DATA Annual Report

 Sample Size- 300 Sampling Method- Simple random method

Different modes of payment Online Payment RTGS/NEFTE- ChequeDirect Credit Manual PaymentRTGS/NEFTManual ChequeTransfer Why They Prefer Avoid long waiting period No need of physical cheque/Demand draft Reduces time/cost/effort Reduces loss of documents in transit. No need to send your representative for collection of B/L instead avail E-B/L facility. Print B/Ls at your office by availing E-B/L facility.

QUESTIONIARS
Out of 300 how much parties prefer online payment & manual payment

online payment manual payment

 Out of 210 how much prefer RTGS/NEFT E-Cheque Direct Credit

RTGS/NEF T
No. of Parties % of targeted parties 56 26.6%

E- Cheque
144 68.5%

Direct Credit
10 4.7%

Total
210 100%

Direct RTGS/N Credit EFT

RTGS/NEFT E-Cheque Direct Credit

E-Cheque

INTREPRETATION From The Above Analysis It Is Said That Out of The Total 200 Parties It Saw That Most Parties Prefer E- Cheque. From The Above Analysis It Is Said That Out of The Total 200 Parties It Saw That 46 Parties Prefer RTGS & NEFT. From The Above Analysis It Is Said That Out of The Total 200 Parties It Saw That10 Parties Prefer Direct Credit.

 Out of 210 how much prefer RTGS/NEFT E-Cheque Direct Credit

NEFT/RTGS Manual Cheque No. of Parties % of targeted parties 60 66.6% 20 22% 10 11% 90 100% Transfer Total

Transf er
NEFT/RTGS

Manual Cheque

Manual Cheque

NEFT/RTGS

Transfer

INTREPRETATION From The Above Analysis It Is Said That Out of The Total 200 Parties It Saw That Most Parties Prefer NEFT & RTGS. From The Above Analysis It Is Said That Out of The Total 200 Parties It Saw That 60 Parties Prefer Manual Cheque. From The Above Analysis It Is Said That Out of The Total 200 Parties It Saw That20 Parties Prefer Transfer.

 Out Of 144 Parties Why The Paties Prefer E- Cheque

PATICULAR Avoid long waiting period No need of physical cheque/Demand draft Reduces time/cost/effort Reduces loss of documents in transit No need to send your representative for collection of B/L instead avail E-B/L facility. Print B/Ls at your office by availing E-B/L facility.
a
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No. OF RESPONTENT 41 20

PERCENTAGE 28.47 13.88

57 15

39.58 10.41

3.47

4.16

Out Of 46 Parties Why The Paties Prefer NEFT & RTGS

PATICULAR Avoid long waiting period No need of physical cheque/Demand draft Reduces time/cost/effort Reduces loss of documents in transit No need to send your representative for collection of B/L instead avail E-B/L facility. Print B/Ls at your office by availing E-B/L facility. 3 6.52 3 6.52 4 15 8.69 32.60 No. OF RESPONTENT 10 9 PERCENTAGE 21.73 19.56

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Out Of 10 Parties Why The Paties Prefer Direct Credit

PATICULAR
Avoid long waiting period No need of physical cheque/Demand draft Reduces time/cost/effort 2 20

No. OF RESPONTENT
2 3

PERCENTAGE
20 30

Reduces loss of documents in

transit No need to send your representative for collection of B/L instead avail E-B/L facility.

30

Print B/Ls at your office by

availing E-B/L facility.

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FINDINGS
TIMING SETTLEMENT Of RTGS & NEFT NEFT

NEFT/RTGS NEFT

TIMINGS 8 am to 6 pm 8 am to 11 am

IN WEEK DAYS week days On Saturday

RTGS
RTGS RTGS TIMINGS 9:00 hours to 16:30 hours 9:00 hours to 12:30 hours IN WEEK DAYS week days On Saturday

MINIMUM & MAXIMUM LIMIT OF RTGS & NEFT

PARTICULAR NEFT RTGS MINIMUM 0.01 200000 MAXIMUM 200000 8000000000

MINIMUM & MAXIMUM LIMIT OF RTGS & NEFT IN BATCH FILE

PAY CODE PAYMENT TYPE MINIMUM ALLOWED MAXIMUM ALLOWED LIMIT EFFECTIVE FROM 01 02 03 04 RTGS NEFT PO/DD DIRECT CREDIT 05 06 CHEQUE ECS 0.01 0.01 1000000000 1000000000 05/07/2008 05/07/2008 200000 0.01 0.01 0.01 8000000000 5000000000 1000000000 5000000000 13/11/2010 30/10/2009 05/7/2008 30/10/2009

 SUGGESTIONS Company Should Do The Transaction In Their Settlement To Reduce The Cost