RBI laments lack of patronage to RTGS

Bangalore, Mar 21 (UNI) The Reserve Bank of India (RBI) today lamented the poor patronage to the Real Time Gross Settlement (RTGS) system introduced by it to ensure instant inter bank transfer of funds.

Speaking at a function organised by the Canara Bank to inaugurate 125 ATMS across the country, RBI Deputy Governor V Leeladhar said as against the capacity to handle 1,00,000 transactions a day, RTGS currently operated only 15,000 transactions. About Rs 1,00,000 crore worth funds were transferred in a day through RTGS, he added.

Stating that lack of awareness being the main reason for this poor performance of the RTGS system, the infrastructure was set up at a cost of Rs 150 crore by RBI and offered free of cost by the regulator to Banks, he said the banks should spread across the message to its clients that besides inter-bank transfers it could also be offered to customers.

Only some foreign banks were using RTGS for customers and when it was found that these banks charge a hefty fee of Rs 500 per transaction of even Rs 10,000 the limited was raised to Rs 1,00,000.

But these banks blame the RBI for bringing in the regulation and seek the customers to go in for cheque transaction without helping customers to use the alternate mode of National Electronic Fund Transfer system under which funds were transferred electronically four times a day.

Even this system was capable of handling more than 1,00,000 transactions a day and RBI of contemplating of transferring funds once in two hours in this mode, he added.

MORE UNI