NCHL rolls out connectRTGS

NCHL has successfully completed the roll out of connectRTGS at the 24 commercial banks for integrating their core banking systems with the Real Time Gross Settlement (RTGS) system supporting the central bank move.
According to the central bank, connectRTGS is a gateway to enable the banks and financial institutions (BFIs) to initiate and process RTGS transactions. “The majority of the banks have assigned NCHL as its integration partner in the RTGS implementation project, corresponding to which NCHL has been able to provide the key components includinginward, outward and reporting modules, along with facilitation for technical and operational supports to the banks,” the central bank said, adding that the RTGS system is meant for processing of high value and urgent transactions between the participating BFIs and for settlement of systemically important payment systems on net settlement basis. “RTGS system normally will remain as the backbone of the various national payment systems to provide immediate realisation of funds and minimising the settlement risk of other payment systems.”
The system has been provided to the commercial banks in the first phase and will be later provided to the development banks and finance companies, the central bank said.
Currently, NCHL has been facilitating the BFIs for establishing and providing various national payment infrastructures to its member BFIs, non-banking members like government, semi-government, entities, PSP/PSO and other service providers. The connectRTGS – which has been one of the initiatives of NCHL to support and facilitate the industry at almost zero cost – has been provided as an extension of the existing infrastructures of NCHL but built to support and comply with the international standards required for integrating the RTGS system.
NCHL has been operating the major national payment systems including Electronic Cheque Clearing System (NCHL-ECC), Interbank Payment System (NCHL-IPS), connectIPS e-Payment system and National Payments Interface (NPI) as a consolidated APIs in participation with over 75 BFIs and over 20 non-bank institutions including PSPs/PSO.

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.

Central bank launches RTGS in banking sector

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.

RTGS comes to operation from Thursday

The central bank is launching real time gross settlement (RTGS) with an aim to settle high-value cheque payments in real-time from Thursday.
The Department of Payment System at Nepal Rastra Bank (NRB) confirmed the installation of the necessary software and mechanism to make the payment system more efficient.
Currently, the banking institutions take up to two days to clear and settle a cheque that is issued by one bank and deposited at another. But the RTGS once comes into operation will make clearance and settlement of high-value cheques within a few seconds. “The central bank has already inked the agreement with 28 commercial banks for the operation of RTGS,” the department informed, adding that it is also planning to ink the agreement with development banks and also other financial institutions by December.
Nepal Clearing House Ltd (NCHL) – a public company established jointly by central bank, and banks and financial institutions (BFIs) – is handling all works related to clearing and settlement of cheques, using electronic cheque clearing system, at present.
But after the RTGS is fully implemented, customers will even be able to make payments without issuing cheques, the department said, adding that the RTGS users will later on be able to fill up a form in their respective bank permitting transfer of funds to the targeted recipient without issuing cheque.
Until the system is fully implemented, the central bank is allowing payments through both cheques and RTGS but issuing a cheque or settlement form without sufficient balance in the account and intentionally signing off with a wrong signature will be blacklisted, according to the new directive.
While Connect IPS – operated by NCHL – has also been providing real-time settlement services, there are some difficulties in settlement of large amounts of money.
The central bank, has earlier announced that settlement of amounts between Rs 200,000 and Rs 2 million will have to be made through the RTGS or cheque system but the settlement of any amount above Rs 2 million will have to be mandatorily made through the RTGS.