What changed
Previously, returned RTGS customer transactions used R42 message format without a standard field for return details, causing delays in crediting senders. Now, all participants must provide return info in field tag 7495 with three mandatory lines: 'RETURN', original UTR, and reason for return. Additional details can go in the next three lines.
What it means for you
This standardizes the return process, making it easier for originating banks to trace original debits and credit funds faster. It reduces operational friction and improves customer experience. Banks must update their RTGS systems to comply by July 15, 2009.
What you must do
- Update RTGS system to populate field tag 7495 with standardized return info (Line 1: RETURN, Line 2: original UTR, Line 3: reason) by July 15, 2009.
- Train operations staff on the new R42 message format for returned customer transactions.
- Explore implementing SMS/email alerts for RTGS debits/credits to enhance customer service.
- Acknowledge receipt of this circular to RBI.
Who it affects
All banks participating in RTGS, RTGS operations teams, IT teams managing payment systems, Customer service departments
What is the deadline for implementing the new RTGS return process?
All RTGS participants must implement the standardized return guidelines by July 15, 2009.
What information must be included in field tag 7495 for returned RTGS transactions?
The first three lines must contain: Line 1 'RETURN', Line 2 the UTR number of the original transaction, and Line 3 the reason for return. Additional info can go in lines 4-6.
Why is RBI asking banks to explore SMS/email alerts for RTGS transactions?
To make RTGS more customer-friendly by notifying account holders of debits/credits in real time, reducing dependency on bank statements or internet banking.