The Hindu Business Line : More banks, PDs under RTGS soon

ONE hundred and twenty financial intermediaries, comprising mainly banks and primary dealers, will be brought under the network of the Real Time Gross Settlement System by June, according to Mr R. Gandhi, Chief General Manager, Reserve Bank of India.

Speaking to presspersons on the sidelines of a seminar on RTGS organised by the Indian Banks' Association, Mr Gandhi said: "by the end of this week around 20 banks will be brought under the ambit of the RTGS, while another 20 will be added by month-end."

Some of the banks, which will be soon brought under the RTGS, include Union Bank of India, ICICI Bank, BNP Paribas, Central Bank of India, Corporation Bank, Bank of India, Bank of Baroda and Canara Bank.

At present, only four banks are covered by the RTGS, they are State Bank of India, HDFC Bank, Saraswat Bank and Standard Chartered Bank conducting inter-bank transactions with settlements aggregating Rs 600-1,000 crore per day.

Meanwhile, the RBI has asked banks to expand the coverage of RTGS in order to enable a large customer base to utilise this service.

``One of the crucial challenges created by RTGS would be the need for banks to ensure that the funds ultimately reach the actual beneficiary," said Dr R.B. Barman, Executive Director, RBI, speaking at the seminar here.

"Banks need to see that RTGS services are offered at more and more branches, without adding to inter-branch reconciliation problems, which is an area of concern", he said.

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