RBI governor Raghuram Rajan on Saturday said the new real time gross settlement (RTGS) system for fund transfers will improve the efficiency of the country's financial markets.
“With its advanced liquidity and queue management features, the new RTGS system is expected to significantly improve the efficiency of financial markets,” Rajan said while inaugurating the ISO 20022-compliant system.
The RTGS system is used to settle interbank fund transfers by banks and their customers and is critical in facilitating orderly settlement of payment obligations. With its implementation, new regulations will replace the operating guidelines and regulations of 2004.
Rajan said the payment system has to be efficient and ahead of the financial markets to be able to take care of future developments. The system was first implemented in India in March 2004.