Dhaka, Bangladesh (BBN) - The central bank of Bangladesh is set to introduce a Real Time Gross Settlement (RTGS) system on October 8 to facilitate business activities across the country, a central banker said on Tuesday.
“We’ve already instructed all banks for taking preparations to implement the RTGS as per our timeline,” K M Abdul Wadood, general manager of the Payment Systems Department of Bangladesh Bank (BB) told BBN in Dhaka.
He also said the central bank has also asked the participating banks to submit their RTGS implementation plan to the central bank by April 23.
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).
India, Pakistan and Sri Lanka have already introduced the RTGS to provide speedy services for high value transactions by businessmen.
BBN/SSR/AD-07Apr15-11:40 pm (BST)