No.56-16/2020-21/NEFT-RTGS/PA (Accounts)/ Government of India
Ministry of Communications Department of Posts
Dak Bhawan- PA Wing New Delhi-110001
Dated 17/05/2022
Sub: Standard Accounting Procedure for NEFT Facility to POSB Customers-reg.
Ref: This office letter 56-16/2020-21/NEFT-RTGS/PA (Accounts) dated 17.05.2021, 10.01.2022, 24.01.2022, 04.02.2022, 14.03.2022, 22.04.2022
Please refer to the letters cited above. In connection with launch of NEFT facility across the country, the Standard Accounting Procedure is enclosed for further necessary action. It is requested to take the following action to facilitate smooth functioning of NEFT transactions, accounting reconciliation and settlement.
a) Provide necessary training to the identified staff of PAO, Delhi.
b) Ensure to provide required reports to PAO, Delhi for daily accounting, reconciliation& settlement.
c) Ensure to extend proper co-ordination between Nodal office-operation Team at Bengaluru and Nodal office-PAO, Delhi.
d) It is suggested to regulate the NEFT facility to the Customers during the time of RBI EoD in line with the industry practice to ensure that the EoD Mismatch is eliminated. (Reference:
Annexure-II — Para 3 in 56-16/2020-21/NEFT-RTGS/PA (Accounts)/3588 to 90 dated 17-12-2021
Standard Operating Procedure Sponsor Bank for NEFT/RTGS facility
Nodal Office for Accounting, Reconciliation & Settlement Scope of the Accounting Procedure Chargeable / Non-Chargeable —to Customers
Revenue & Expenditure for NEFT Transactions to Department of Posts Summary of Accounting Procedure Fund Flow Management
STANDARD ACCOUNTING PROCEDURE
Fund Flow Accounting
(a) Funding of SBI Current Account
(b) Funding of IPPB Settlement Account
(c) Return of excess funds in IPPB Settlement Account NEFT - Transaction Accounting
(a) NEFT — Outward Transaction
(b) NEFT — Outward Return (Business Decline)
(c) NEFT — Outward Return Technical Decline
(a) NEFT — Inward Transaction
(b) NEFT — Inward Return
(c) NEFT — Inward Return Failure / Rejection NEFT — Exception Handling
(a) Outward Transactions
(b) Inward Transactions
NEFT — Reconciliation & Settlement by PAO. Delhi
STANDARD ACCOUNTING PROCEDURE
1. Introduction
Department of Posts is providing NEFT / RTGS facility to the POSB Customers. which is available 24 x 7 x 365 days. This facility enables POSB customers to transfer funds to and from Other Bank Accounts to POSB Accounts in DoP-CBS
.2. Standard Operating Procedure
The Standard Operating Procedure is as prepared by the FS Division
3. Sponsor Bank for NEFT / RTGS Facility
IPPB is the Sponsor Bank for providing NEFT/RTGS facility to POSB Customers
4. Nodal Office for Accounting, Reconciliation & Settlement of amount PAO, Delhi is the Nodal Office for the entire country for arrangement of funds daily accounting, reconciliation and settlement of amount. Detailed scope of Nodal Office is mentioned under Roles and responsibilities section of this document
5. Scope of this Accounting Procedure
This Accounting Procedure is restricted to NEFT Transactions and related activities only. For RTGS, separate accounting procedure will be released separately.
6. Chargeable / Non Chargeable to Customers
(a) Customer — Not Chargeable
a. Inward NEFT Transactions are not chargeable to Customers
b. Online NEFT Transactions initiated through e-Banking and M-Banking Channels are not chargeable
(b) Customer —Chargeable for Outward NEFT
When Customer approaches the Counter and requests for LEFT Outward, the following charges are levied which are auto debited from the POSB Account at the time of transaction
a. For transactions upto Rs. 10,000: Rs. 2.50 + GST
b. For transactions above Rs.10.000 upto Rs. 1 Lakh Rs. 5.00 + GST
c. For transactions above Rs. 1 Lakh upto Rs. 2 Lakhs Rs. 15.00+GST
d. For transactions above Rs. 2 Lakhs Rs. 25.00+GST
7. Revenue & Expenditure for NEFT Transactions to Department of Posts
Revenue from Other Banks For each inward NEFT transactions from Other Banks to POSB Account an amount of Rn0.25 + CST oil
be received through IPPB from other Banks
Revenue from POSB Customers
Details are mentioned at para 6 above.
Expenditure Payable to IPPB
For each inward NEFT transactions @ 0.15 + GST For each outward NEFT transaction @ Rs. 2 + GST
Expenditure Payable as Interchange Fee
For each outward NEFT transaction @ 0.25 + GST through IPPB Expenditure is to be incurred by
Department of Posts on account of Operational Risks
8. Summary of Accounting Procedure
A) Funding to IPPB Settlement Account for LEFT Transactions
B) NEFTTransactionProcess(Outward/inward/Failuresetc)
c) Accounting of Charges payable to IPPB and interchange fee
payable/receivable to and from IPPB towards NEFT/RTGS transactions.
D) EoD Mismatch Amount
E) Handling of Operational Risks
9. Fund Flow Management
PAO Delhi being the Nodal Office for NEFT Transactions, a Settlement Account with IPPB is opened to keep adequate funds on a daily basis and to replenish it as and when it reaches the pre-defined threshold limit, as communicated from time to time.IPPB Settlement Account will be funded from Government Account of PAO, Delhi through a Current Account opened for the purpose with SBI. As NEFT is a 24 x 7 x 365 facility. sufficient funds to enable the transactions are required to be made available in IPPB Settlement Account. PAO, Delhi will facilitate funding through the SBI Current Account which can be operated at any time.
Apart from the transaction value for NEFT transactions, expenditure and revenue will also be accounted on a daily basis which impacts the Balance in IPPB Settlement account
The same IPPB Settlement Account will be used for RTGS Transactions / Sweep-In and Sweep-Out Transactions between IPPB & POSB Accounts.
Hence, the net balance at the end of the day in the Settlement Account will have an overall impact of transactions from all the above sources
