RBI regulated entities soon to transact in electronic mode

Mumbai, Feb 18 (UNI) Stressing the need to move on from the present mix system of cash and cheque transaction to electronic mode of transaction, Reserve Bank of India Deputy Governor V Leeladhar today said that electronic mode of transaction is in the interest of both banks and their customers.

''All entities regulated by the RBI shall be asked to transact with each other in electronic mode from a cut off date to be decided soon with mutual consultations,'' Mr Leeladhar announced in a function here to mark covering of the Union Bank of India's 2001st branch under its Core Banking Solution (CBS).

He said the results of introducing ''Truncated Cheque System'' in National Capital Region from February 1 are encouraging and the RBI is considering to extend it to other metros.

Under this system a cheque given for realisation by any customer to his branch is kept there itself and an electronic image is sent to the outstation location to complete the process of transaction.

Explaining the working of Real Time Gross Settlement (RTGS) in banking clearing system, Mr Leeladhar said that as many as 40 thousand bank branches at over 500 locations are linked to this.

RTGS enables completion of any transaction more than Rs one lakh within two seconds. he said , adding, '' This is not an end in itself and bankers must strive to find better ways to serve their customers by giving human touch to technology.

He, however, came down heavily on certain banks for not popularising National Electronic Fund Transfer (NEFT) which is meant for transaction of amount less than Rs one lakh. ''I shall also like them to extend multi-city cheque facility to one and all rather than keeping it confined to high-end customers,'' he added.

UNI CP RN SKB1904