Nepal | July 02, 2020

RTGS to be rolled out tomorrow

Himalayan News Service
Share Now:

Once the new system is installed, clearance and settlement of cheques will be performed within seconds

Kathmandu, September 10

With an aim to settle high-value cheque payments in real-time, Nepal Rastra Bank (NRB) is launching a new system — real time gross settlement (RTGS) — from Thursday.

Bam Bahadur Mishra, head of Department of Payment System at NRB, informed that installation of the necessary software and mechanism to make the payment system more efficient had been completed.

At present, the banking institutions take anywhere between a few hours and two days to clear and settle a cheque that is issued by one bank and deposited at another.

Once the new system is installed, clearance and settlement of high-value cheques can be performed within a few seconds.

As per Mishra, the central monetary authority has already inked the agreement with 28 commercial banks for the purpose.

“We plan to ink the agreement with development banks and other financial institutions associated with them as well by December. Thereafter all the financial institutions will come under the RTGS.”

Currently, Nepal Clearing House Ltd (NCHL), a public company established jointly by NRB, banks and financial institutions, among others, is handling all works related to clearing and settlement of cheques, using electronic cheque clearing system.

After the RTGS is fully implemented, customers will even be able to make payments without issuing cheques. As per Mishra, RTGS users will later on be able to fill up a form in their respective bank permitting transfer of funds to the targeted recipient, thereby ridding the need to issue cheques.

While Connect IPS, run by NCHL, has also been providing real-time settlement services, there are some difficulties in settlement of large amounts of money.

Earlier, NRB had announced that settlement of amounts between Rs 200,000 and Rs two million would have to be made through the RTGS or cheque system. The central bank had said that settlement of any amount above Rs two million would have to be mandatorily made through the system.

“Until the system is fully implemented, we are allowing payments through both cheques and RTGS,” Mishra informed, adding that once fully implemented, the liquidity problem will also be resolved as the settled amount will immediately be transferred to the recipient’s account.

Moreover, anyone issuing a cheque or settlement form without sufficient balance in their account and intentionally signing off with a wrong signature will be blacklisted, as per the new directive.


A version of this article appears in print on September 11, 2019 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Young adults receive health materials in Bajura's rural municipality

BAJURA: As many as 280 girls and boys have received health and safety materials in Khaptad Chhededaha Rural Municipality of Bajura district. The materials were provided by Mahila Bikas Manch (Women Development Forum) in coordination with the local level. Krishnaa Dani, Programme Coordinator of Read More...

COVID-19 Update: 482 new cases, one death recorded on Wednesday

KATHMANDU: Nepal’s Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and government’s response to the health crisis. As of today, 233,227 tests through Polymerase Chain Reaction (PCR) method and 300,620 Rapid Diagn Read More...

Absconding convict arrested after 22 years in Tanahun

TANAHUN: Police have arrested an absconding person involved in a road accident after 22 years of being convicted, on Tuesday. Deputy Superintendent of Police (DSP) Yuvaraj Timilsina of District Police Office, Tanahun, said that Laxman Shrestha, 50, of Shuklagandaki Municipality-3 was arrested fro Read More...

Covid-19 cases continue to escalate in Kathmandu, 10+ cases reported two days in a row

KATHMANDU: The number of coronavirus-infection cases in Kathmandu valley are slowly but steadily rising, with the case count exceeding 10 two days in a row. With the confirmation of 17 new cases in the last 24 hours, the valley's case tally has hit 122 on Wednesday. The number of additional ca Read More...

TUTH. Tribhuvan University Teaching Hospital, Teaching Hospital, Maharajgunj

49-day-old infant diagnosed with Covid-19 passes away in Kathmandu

KATHMANDU: A 49-day-old infant diagnosed with Covid-19 passed away on Wednesday evening at Tribhuvan University Teaching Hospital (TUTH), where he was receiving treatment. Ministry of Health and Population, in its regular press briefing, confirmed the passing of the baby. The infant -- resident o Read More...

India deploys helicopter, 12 drones to stop fast-spreading locusts

NEW DELHI: India on Tuesday deployed a helicopter and a dozen drones spraying insecticide to stop desert locusts that have spread to nine heartland states of the world's second-biggest producer of rice and wheat. The move came after swarms invaded Gurugram, a satellite city of the capital N Read More...

Nepali Army sacks Brigadier General, Colonel for defying chain of command

KATHMANDU: The Nepali Army on Wednesday sacked two of its high-ranking officers for offence related to discipline, chain-of-command and military conduct. Brigadier General Surendra Singh Rawal and Colonel Anil Khadka were relieved of duty on being found guilty for going against the military chai Read More...

TikTok

India's TikTok stars feel pained by government app ban

MUMBAI: Geetha Sridhar never used to enter her kitchen in Mumbai without her smartphone. The 54-year-old homemaker used to post dozens of short videos daily on the Chinese video app TikTok, mostly of herself cooking traditional recipes. With 1 million TikTok followers, she earned an average 50,00 Read More...