Member access

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
Recommend:
0

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
Recommend :
0
React to this article
Latest news
Date Title
<1m ago NEWFIELD EXPLORATION : Closes Sale of Granite Wash Assets
<1m ago LOCKNCHARGE : Launches Two New Syncing and Charging Carts Designed for the Needs of iPad®, iPad Air™ or iPad Mini™ Devices for Back to School
<1m ago Bacon Fan? Join the Club
1m ago COMCAST : 2015 Military Friendly ® Schools List Released
1m ago Nearly Half of Teens Showing Potential Signs of Hearing Loss
1m ago Involving Patients and Their Families in Health Care Delivery Key to Increasing Quality of Care, Preventing Harms and Reducing Costs
2m ago CHINA FOOD : finds irregularities in TCM products
2m ago NEXIA : Uz-Daewoo to launch production of crossover, minivan in Uzbekistan
2m ago CHINA EASTERN AIRLINES : Tropical storm causes flight delays in Shanghai
2m ago UBS : China GDP to grow 6.8% in 2015
Latest news
Advertisement
Hot News 
DIXONS CARPHONE : UK's EE to buy 58 stores from Phones 4u for 2.5 million pounds
REGENERSIS : *panmure cuts regenersis price target to 403 (502) pence - 'buy'
NORTHBRIDGE INDUSTRIAL SERVICES : Profit Up; Raises Funds In Placing As It Buys Rest Of Tasman
ULTRASONIC : Ex-head of shoe firm denies theft
BETTER CAPITAL PCC : Says 2012 Fund Provides Funding To Spicers-OfficeTeam
Most Read News
1d ago TEKMIRA PHARMACEUTICALS : U.S., Canada allow emergency use of Tekmira's Ebola treatment
1d ago DIXONS CARPHONE : UK's EE to buy 58 stores from Phones 4u for 2.5 million pounds
1d ago BNP PARIBAS : Chairman Baudouin Prot to leave: Le Figaro
1d ago AIRBUS : Boeing spar over jet production strategy
1d ago MCGRAW HILL FINANCIAL : to Sell McGraw Hill Construction to Symphony Technology Group
Most recommended articles
5d ago Main Italian lenders took 23 billion euros of cheap ECB cheap
2m ago China's trade minister concerned about falling Japanese investment - business delegates
4m agoDJAdvisers' Side Businesses Include Broadway Shows, Cattle Farms -- Practice Management
6m ago AP MOELLER MAERSK A/S : Maersk could hand back more cash to shareholders - analysts
9m ago DEUTSCHE BANK : Munich prosecutors seek charges against Deutsche Bank's Fitschen
Dynamic quotes  
ON
| OFF