BB to introduce Real Time Gross Settlement system for quicker banking

The central bank will introduce the Real Time Gross Settlement (RTGS) in the financial services of commercial banks by 2014 to ensure smoother and quicker inter-bank clearing of payments, said Bangladesh Bank (BB) officials on Sunday.

“We’re working to develop the swift finance service mechanism, and the RTGS will be introduced by 2014 to integrate the services of the commercial banks,” BB executive director Dasgupta Asim Kumar said.

He was talking to reporters after the inauguration of the 12th Saarc Payments Council (SPC) Meeting here.

Other Saarc countries, including India and Pakistan, have already introduced the RTGS, providing speedy services for high value transactions by traders and investors, he said.

“Once introduced in the country, the RTGS will quicken high value transactions… and the liquidity will also be ensured,” said Dasgupta.

Addressing the inauguration of the 12 SPC Meeting between participants from the central banks of all the Saarc countries, except from Afghanistan, BB governor Dr Atiur Rahman said, “Our next, medium-term goal will be to put in place an RTGS for real time settlements over the medium term as high value transactions increase in number and volume.”

“The Payment System Department of BB is now working towards commissioning of a National Payment switch to provide a common platform for interbank electronic payments originating from different delivery channels including ATMs, POS terminals, Internet, and mobile applications,” he added.

Atiur also pointed out that the SPC will contribute to the standardisation of the payment systems in Saarc countries that will eventually help speed up the cross-border interlinking of electronic fund transfer channels of all member countries.

News Source: UNB

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