MUMBAI, OCT 19:
The Reserve Bank of India today launched the new Real Time Gross Settlement (RTGS) system for large-value funds transfer.The system has several new functionalities including advance liquidity features, gridlock resolution mechanism and hybrid settlement facility, facility to accept future value-dated transactions and options to process multi-currency transactions.
The Real Time Gross Settlement (RTGS) system is a large-value funds transfer system which banks use to settle inter-bank transfers for their own accounts as well as for their customers.
The new ISO 20022 compliant RTGS system provides three access options to participants — thick-client, Web-API (through INFINET or any other approved network) and Payment Originator module. Participants can decide the mode of participation in the system based on the volume of transactions and the cost of setting up the infrastructure.
According to RBI Governor Raghuram Rajan, a payment system like plumbing has to be efficient and ahead of the financial markets to be able to take care of future developments in the financial markets.
“With its advanced liquidity and queue management features, the new RTGS system is expected to significantly improve the efficiency of financial markets,” said Rajan.
