Dhaka, Bangladesh (BBN)– Bangladesh is going to introduce a Real Time Gross Settlement (RTGS) system by the end of September 2015 aiming to facilitate business activities across the country.
A deal will be signed on Thursday between the Bangladesh Bank (BB) and Sweden-based CMA Small Systems AB in this connection, officials said on Wednesday.
“The central bank will start installation workers after signing the deal,” a BB senior official told BBN in Dhaka.
He also said: “We expect that the RTGS will go live before the deadline.”
India, Pakistan and Sri Lanka have already introduced the RTGS to provide speedy services for high value transactions by businessmen, according to the central banker.
The RTGS, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting).
‘Real time’ means the processing of instructions at the time they are received rather than at some later time. ‘Gross Settlement’ means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis).
BBN/SSR/AD-19Nov14-11:20 pm (BST)