Dr Raghuram Rajan the Reserve Bank of India Governor today said the new real time gross settlement (RTGS) system for fund transfers can improve the potency of the country’s financial markets.

“With its advanceds features, the new RTGS system is predicted to considerably improve the efficiency of financial markets,” Dr Rajan said whereas inaugurating the ISO 20022-compliant system.

The RTGS system is employed to settle interbank fund transfers by banks and their customers and is vital in facilitating orderly settlement of payment obligations. With its implementation, new laws can replace the operative tips and laws of 2004.

Dr Rajan said the payment system has to be economical and earlier than the financial markets to be ready to take care of future developments.

The new RTGS system is very scalable and can have many new functionalities, the Reserve Bank of India aforesaid in a very release.

It will have options like a facility to simply accept future worth dated transactions and choices to method multi-currency transactions.

The system was initial implemented in India in March 2004 as an electronic funds transfer system across the country.

The RBI said, if we implement the new RTGS system, the existing RTGS system can cease to be operational,.

“RTGS System laws 2013” can replace the RTGS (Membership) Business operating tips, 2004, and RTGS (Membership) laws, 2004.

The RBI said new functionalities are going to be notified to participants when they are created available for use.