Tuesday, November 26, 2019

Banks resume payments through RTGS system

The real time gross settlement (RTGS) system – which has stopped functioning immediately after it was launched in banking sector on September 16 – has resumed once again from today.
Though service was halted due to some technical glitches, all commercial banks have adopted and started RTGS system in a full-fledged manner from this week, according to the central bank. RTGS is a new payment settlement system adopted in the banking sector. As it is new to everyone, the system was halted for some time.
All the 28 commercial banks have adopted payment through this system from this week. The central bank said it is committed to ensuring uninterrupted implementation of this system. But bankers reverted to the previous system for making payments after the new payment system introduced by the central bank became dysfunctional. The RTGS system is intended to ease inter-bank cheque payments, wherein customers had to wait for a day for the settlements.
Earlier in September, central bank governor Dr Chiranjibi Nepal and Lord Mayor of London (UK) Peter Estlin had jointly inaugurated the high-value cheque payment system in real-time in Nepal. The UK Aid is technically supporting Nepal for implementation of the RTGS, which ensures payments without issuing cheques.
The central bank has – as of now – made RTGS voluntary for transactions of above Rs 200,000, while transactions of above Rs 2 million is mandatory through the system. The central bank will gradually make RTGS mandatory among other banks and financial institutions (BFIs) in the near future.

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