The central bank has formally launched real time gross settlement (RTGS) from today.
Central bank governor Dr Chiranjibi Nepal and Lord Mayor of London (UK) Peter Estlin jointly inaugurated the high-value cheque payment system in real-time amid a function held today.
The UKAid is technically supporting Nepal for the launch and implementation of the RTGS in Nepal. “The launch of RTGS will not only ensure the clearance and settlement of high-value cheques within a few seconds, but will also curb possible transactions from money launderers and terrorists,” governor Nepal said, on the occasion.
Though, the central bank has inked agreements with all the 28 commercial banks to adopt the RTGS, Machhapuchchhre Bank and Nepal Investment Bank have adopted the system for the first time.
The central bank has made RTGS mandatory only for commercial banks at present but it will be implemented among development banks and finance companies within the next few months.
According to the central bank, the RTGS has been made voluntary for transactions of above Rs 200,000 while transactions of above Rs 2 million have to mandatorily be made through the RTGS.
Prior to the implementation of RTGS, banking institutions have been taking anywhere from few hours and two days to clear and settle a cheque that is issued by a bank and deposited at the other.
Currently, Nepal Clearing House Ltd (NCHL) – a public company established jointly by central bank, banks and financial institutions – is handling all works related to clearing and settlement of cheques, using electronic cheque clearing system.
After the RTGS is fully implemented, a customer will even be able to make payments without issuing cheques, according to the central bank.
Central bank governor Dr Chiranjibi Nepal and Lord Mayor of London (UK) Peter Estlin jointly inaugurated the high-value cheque payment system in real-time amid a function held today.
The UKAid is technically supporting Nepal for the launch and implementation of the RTGS in Nepal. “The launch of RTGS will not only ensure the clearance and settlement of high-value cheques within a few seconds, but will also curb possible transactions from money launderers and terrorists,” governor Nepal said, on the occasion.
Though, the central bank has inked agreements with all the 28 commercial banks to adopt the RTGS, Machhapuchchhre Bank and Nepal Investment Bank have adopted the system for the first time.
The central bank has made RTGS mandatory only for commercial banks at present but it will be implemented among development banks and finance companies within the next few months.
According to the central bank, the RTGS has been made voluntary for transactions of above Rs 200,000 while transactions of above Rs 2 million have to mandatorily be made through the RTGS.
Prior to the implementation of RTGS, banking institutions have been taking anywhere from few hours and two days to clear and settle a cheque that is issued by a bank and deposited at the other.
Currently, Nepal Clearing House Ltd (NCHL) – a public company established jointly by central bank, banks and financial institutions – is handling all works related to clearing and settlement of cheques, using electronic cheque clearing system.
After the RTGS is fully implemented, a customer will even be able to make payments without issuing cheques, according to the central bank.
No comments:
Post a Comment