Nepal | February 21, 2020

Banks resume payments through RTGS system

Himalayan News Service

Kathmandu, November 26

The real time gross settlement (RTGS) system, which had stopped functioning immediately after it was launched in banking sector on September 16, has resumed once again.

Though service was halted due to some technical glitches, all commercial banks have adopted and started RTGS system in a full-fledged manner from this week, as per Nepal Rastra Bank (NRB).

After this new payment system introduced by the central bank became dysfunctional, bankers had reverted to the previous system for making payments. The RTGS system is intended to ease inter-bank cheque payments, wherein customers had to wait for a day for the settlements.

“RTGS is a new payment settlement system adopted in the banking sector. As it was new to all of us, the system was halted for some time.

However, all 28 commercial banks have adopted payment through this system from this week,” informed Laxmi Prapanna Niraula, spokesperson for NRB, adding that the central bank is committed to ensuring uninterrupted implementation of this system.

Earlier in September, NRB Governor Chiranjibi Nepal and Lord Mayor of London (UK) Peter Estlin had jointly inaugurated the high-value cheque payment system in real-time in Nepal. UK Aid is technically supporting Nepal for implementation of the RTGS. Implementation of the system ensures payments without issuing cheques.

As of now, NRB has made RTGS voluntary for transactions of above Rs 200,000, while transactions of above Rs two million is mandatory through the system.

Niraula further informed that the central bank will gradually make RTGS mandatory among other banks and financial institutions (BFIs) in the near future.

A version of this article appears in print on November 27, 2019 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories: