Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Reserve Bank of India : RBI Governor launches new ISO 20022 compliant RTGS System

10/19/2013 | 06:21am US/Eastern

Dr. Raghuram Rajan, Governor, Reserve Bank of India, today launched the new Real Time Gross Settlement (RTGS) system of the Reserve Bank of India. Complimenting the entire team for successfully completing the project, the Governor said, "The new RTGS system is a great example of what we are capable of when we put our minds to it." He added that payment system like plumbing has to be efficient and ahead of the financial markets to be able to take care of the 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. He hoped the new RTGS system would be such a driver for India's financial system.

Reportedly the first in the world to be built on ISO 20022 messaging standards, the new RTGS system is highly scalable and will have several new functionalities. These include advance liquidity features, including gridlock resolution mechanism and hybrid settlement facility, facility to accept future value dated transactions, options to process multi-currency transactions, etc. These functionalities, as and when made available for use, will be notified to the participants.

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. The participants can decide the mode of participation in the system based on the volume of transactions and the cost of setting up the infrastructure.

The Real Time Gross Settlement (RTGS) system is a large-value funds transfer system which banks use to settle interbank transfers for their own account as well as for their customers. It was first implemented in India in March 2004 as a major technology based electronic funds transfer system across the country. The system facilitates customer, inter-bank payment on a 'real' time and on gross basis. The system also facilitates settlement of Multilateral Net Settlement Batch (MNSB) files emanating from other ancillary payment systems. The RTGS infrastructure is critical in facilitating the orderly settlement of payment obligations. The role of central banks as operators of large-value payment systems is important in the context of the broader role of the central bank in a nation's financial system insofar as it offers "safety net" attributes by providing final settlement in central bank money.

RTGS is a critical Financial market Infrastructure (FMI) operated by the Reserve Bank of India and it will be assessed against the Committee on Payment and Settlement Systems and the International Organisation of Securities Commissions (CPSS-IOSCO) "Principles for Financial Market Infrastructures" applicable to FMIs.

With implementation of the new RTGS system, the existing RTGS system will cease to be operational. Further, the "RTGS System Regulations 2013" would replace the RTGS (Membership) Business Operating Guidelines, 2004 and RTGS (Membership) Regulations, 2004.

Alpana Killawala
Principal Chief General Manager

Press Release : 2013-2014/819



distributed by
React to this article
Latest news
Date Title
03:53a Swiss consumer prices fall most in 56 years
03:52a THAI AIRWAYS PCL : launches social.airways.com website
03:51a KYUSHU ELECTRIC POWER : Japan's Kyushu Electric eyes first H1 profit in five years with nuclear restart
03:48a No BOJ easing needed in October if inflation expectations anchored - IMF
03:47a RTX A/S : Announcement 52-2015
03:47a DEUTSCHE TELEKOM : High definition now standard with Entertain
03:45a JZ CAPITAL ZDP NEW ZERO DIV PREF SHS NPV : PARTNERS LTD - Further Information on Proposed Placing and Open Offer
03:44a TAINAN ENTERPRISES : Dengue fever escalates in Taiwan to 4,667 cases
03:44a KODAL MINERALS : Urges Caution Amid Commodities Slump And Losses
03:44a TPK : shares soar on August sales data Taiex in consolidation
Latest news
Advertisement
Hot News 
IS SOLUTIONS : To "Significantly Exceed" Market View After Strong Start
KODAL MINERALS : Urges Caution Amid Commodities Slump And Losses
BIOVENTIX : Trading Update and Notice of Results
PLANT IMPACT : Annual Revenue Grows On Strong Brazil Business
PERICOM SEMICONDUCTOR : Harwood Feffer LLP : Announces Investigation of Pericom Semiconductor Corp.
Most Read News
09/03 S.F. Prep Study Shows 41% Decrease in Condom Use, Notes AHF
09/03 NORTH MINING SHARES : Suspension of trading
09/03 Photo Release -- Military Family Honored by Eckrich, Walmart and Paris High School Head Football Coach
09/03 2015 National Advanced Biofuels Conference & Expo Announces Preliminary Agenda
09/03 Fitch Upgrades Detroit, MI's Water and Sewer Revs; Outlook Stable
Most recommended articles
03:51a KYUSHU ELECTRIC POWER : Japan's Kyushu Electric eyes first H1 profit in five years with nuclear restart
03:48a No BOJ easing needed in October if inflation expectations anchored - IMF
03:42a Italy may raise 2015 growth forecast after data - minister to paper
03:41a NO BOJ EASING NEEDED IN OCT IF INFLATION EXPECTATIONS ANCHORED : Imf
03:39a Inflationary pressures on the rise in the euro zone - ECRI indicator