Financial Services
Sanjeev Goyal
Department of Financial services
Registration Number : DEABD/E/2023/0028371
Sub: Simplified RTGS Process,
Concerned Stack holders:(1) Ministry of Finance and (2) Reserve Bank of India, (3) Indian Banks Association.
Sir,
RTGS/NEFT is very convenient & fast methods of money transfer, and Government is visibly taking all steps to promote this and other means of funds transfer to achieve the dream of a cashless economy. However, there is one major operational bottleneck associated with this online platform. The ‘description/remarks’ printed in the bank statement is never complete and always insufficient. There is no uniform description format used by banks and, at present, it invariably does not cover the purpose of remittance. As a result, there is a humongous problem to identify and settle the entries in books of accounts. A number of entries accumulate in books leading to confusion, mass pendency and a lot of trouble.
It is requested that appropriate authority may be directed to standardize the process and come out with a uniform format of description printed in bank statement. This will avoid a lot of unnecessary work and further promote the usage of it. Many organisations and individuals (like Science & Engineering Research Board) avoid online transfers and still rely on cheque/DD mode only due to the fact that it is not possible in case of online transfer to identify the sender as well the purpose of remittance through bank statements which keep the account reconciliation pending. As many people use others’ account for remittances, for example, parents remitting fee to school/college on behalf of students, relatives sending money to the hospital for treatment of patients etc, it is impossible to relate and reconcile entries in books without the name of sender and other particulars necessary to link the transaction for example roll number, patient number, membership number, invoice number etc. If an organization is regularly remitting money to vendors against different invoices, there is no way the receiver could reconcile it and relate to different invoices. The receiver of the money is dependent on sender to transfer details to search & relate the entry. Many organasations are forced to avail payment gateway services only to capture such details. Many banks are developing their own software/methods like the concept of virtual account to capture these details and provide it as a special service. As the banks are trying to address this issue, it confirms that this is a real problem.
I have filed several petitions earlier for consideration by RBI, Ministry of Finance, Banks Association and NPCI but the issue still lingers on and there is no resolution.
The reply indicates that there is a provision for such information but optional for banks to follow. RBI has always played a proactive role in protecting the interest of consumers and enhancing the factor of convenience. RBI has also been instrumental in promoting a cashless economy by inventing various payment transfer methods. Even at present in order to promote cashless economy RBI is running a campaign “HAR PAL DIGITAL”. If the issue highlighted can be addressed it can provide a big push towards cashless economy by removing the last hurdle.
Hence it is, requested that banks may come up with ‘defined’ fields which are to be necessarily shown by the recipient's bank account statement in case of RTGS transfer to promote ease of living. This reform will boost the promotion cashless economy. RBI can estimate what is the total population of students, patients, corporates, Traders etc. who would be direct beneficiaries of such a system. Besides, every organization which is sending payment can add the invoice number and other details to avoid the practice of sending UTR number to the recipient for timely and proper reconciliation. Every Government department which accepts payment through RTGS mandates the payer to send the UTR so that payment can be reconciled. All the students getting fellowship disbursed by scientific departments through host institutes face this painful problem of credit entry identification. From a social cost point of view, this will lead to huge savings by avoiding a lot of efforts, emails and correspondence hence social benefit would be much larger. Doing this is also not difficult, RBI or banks association just needs to come out with a ‘defined uniform’ proforma to be followed by all banks. Trust, if done, it will not be less than a reform.
Major Chandrashekhar Kaushik
MBA (Systems & Finance), M.Sc.(Electronics),CAIIB, CISA, CISM, CRISC, CGEIT, CDPSE, CQMSA,SMCSI, Dip Systems Analysis & Design, CIF, DPM&LW, Cert Prog., PMP Trained & Practitioner
Contact : +12023618836(USA) /+91-9560960404 (India)
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Sanjeev Goyal
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SMB
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Major Chandrashekhar Kaushik
MBA (Systems & Finance), M.Sc.(Electronics),CAIIB, CISA, CISM, CRISC, CGEIT, CDPSE, CQMSA,SMCSI, Dip Systems Analysis & Design, CIF, DPM&LW, Cert Prog., PMP Trained & Practitioner
Contact : +12023618836(USA) /+91-9560960404 (India)
To view this discussion on the web visit https://groups.google.com/d/msgid/dwarka-residents/CAEoGZbs4ALpMkL-yMJ7QQU1cqSi49XD9bufq1J8%3D4e9dtJ2SqQ%40mail.gmail.com.