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 LeadersCalendar 

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
04:09a ECOWAS ECONOMIC COMMUNITY OF WEST AFRICAN STATES : reignites cooperation with Germany as president Gauck visits
04:07a TAINAN ENTERPRISES : Powerful earthquake rocks southern Taiwan
04:04a FERRARI NV : 'Iconic' Red Ferrari Sells For Over £24m
04:03a BURBERRY : Yorkshire Tweed Initiative Announced
04:03a AUDI : Chattanooga Times Free Press, Tenn., Mark Kennedy column
04:02a NIPPON TELEGRAPH AND TELEPHONE : BRIEF: Veteran RagingWire executive named president of company
03:59a Quake fells Taiwan apartment building, at least five dead
03:55a TAINAN ENTERPRISES : At least three killed, dozens injured as quake hits Taiwan
03:51a TAINAN ENTERPRISES : 6.4-magnitude earthquake rocks southern Taiwan
03:46a MINISTRY OF FOREIGN AFFAIRS OF I R OF IRAN : Iranian Deputy Foreign Minister for Asia-Pacific Affaris Meets with Indian Minister of Foreign Affairs
Latest news
Advertisement
Hot News 
ANDALAS ENERGY AND POWER : & Power signs heads of agreement to farm-in to Indonesian gas project
GWG : CEO Jon Sabes Appears on TheStreet.com
Technology rout pushes Nasdaq to lowest close since 2014
Lions Gate Plummets Amid Lack of Earnings Guidance
LINKEDIN : forecasts weak first-quarter profit, shares plunge
Most Read News
02/05 FOX, ABC Outlets in LA to Air AHF Condom Ad during Prime Time
02/05 CLIFFORD CHANCE LLP : advises on sale of the Isaac Plains Coal Project by Sumitomo Corporation and Vale
02/05 BEIJING MUNICIPAL GOVERNMENT : China stops approving new coal mines
02/05 MINISTRY OF AGRICULTURE OF PEOPLE REPUBLIC O : Accelerate agricultural supply-side reform
02/05 LIGHTHOUSE BANK : Announces Return of Jon P. Sisk, Appointment as President of the Bank
Most recommended articles
02:48aDJToyota Loses Yen Tailwind
02:48aDJFoxconn Upbeat On Sharp Deal
02:47aDJLAKSHMI MITTAL : Arcelor Grapples With Glut
01:24aDJChina's Central Bank Injects More Cash
02/05 WEEKLY TRADING FORECAST : Will We See More of Last Week’s Exceptional FX and Commodity Volatility?