What changed
RBI observed non-uniform practices among banks accepting government receipts via RTGS. Since RTGS messages cannot carry challans, RBI now requires banks to bilaterally agree before originating such transfers and use interbank mode R42. This is an interim arrangement until a permanent solution is integrated with RTGS.
What it means for you
Banks must now formalize bilateral agreements for government receipt transactions via RTGS, ensuring only accredited banks handle such payments. The use of R42 mode and complete sender/receiver information reduces return rates and aligns with wire transfer guidelines. This adds operational coordination but streamlines government receipts.
What you must do
- Establish bilateral agreements with counterparty banks before originating government receipt transactions via RTGS.
- Use interbank mode R42 for all RTGS-based government receipts.
- Capture complete sender and receiver information in the RTGS message as per wire transfer guidelines.
- Include any additional information required by the receiving bank in field tag 7495.
- Acknowledge receipt of this circular to RBI.
Who it affects
All banks participating in RTGS, Accredited banks handling government receipts, Bank operations teams processing RTGS transactions
Why can't RTGS messages carry challans?
The RTGS platform is designed only for funds transfer messages, not for attached documents like challans. This interim arrangement uses bilateral agreements and R42 mode to bypass the missing challan issue.
What happens if a bank originates a government receipt RTGS without bilateral agreement?
Such transactions may be returned by the receiving bank, as they cannot credit the government account without a challan. The circular mandates prior agreement to avoid returns.
Is this a permanent change?
No, RBI states this is an interim arrangement until the procedure for government receipts is fine-tuned with the RTGS framework.