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K.R. Srivats

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New Delhi Jan. 28 Punjab National Bank (PNB) expects its latest move to offer real-time gross settlement (RTGS) facility online to its customers to boost turnover.

The additional turnover would help make up for the loss in "float" that is expected on account of the new IT initiative, a senior official said.

RTGS is the Reserve Bank of India's payment system in which both processing and final settlement of funds transfer instructions take place continuously in real time.

With PNB riding on the RBI's RTGS facility, its core banking solution (CBS) customers — both corporate and retail — can now undertake inter-bank transfer of funds with the click of a button to any RTGS-enabled branch of other banks in the country.

"We expect this initiative to bring us more current account customers from private sector banks. The additional turnover from new customers to make up for the loss of float," Mr R.I.S. Sidhu, General Manager (IT), told Business Line.

He also said that corporate customers of private sector banks would switch over to PNB as the latter's Internet banking facility was available from a larger network of about 2,375 CBS branches in 675 centres.

Some 1.8 crore customers of CBS branches would benefit immediately from this facility. For corporate customers, transfer of funds (business-to-business) across the country would happen in about two hours, he said.

Moreover, the cost for the customer would be less than the amount spent for demand drafts.

RTGS is a gross settlement system where transfers are settled individually and without netting debits against credits.

More Stories on : Information Technology | Public Sector Banks | Punjab National Bank

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Punjab National Bank expects online RTGS facility to boost turnover

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