September 16: Nepal Rastra Bank on Sunday launched the Real Time Gross Settlement (RTGS) system, that allows bank customers to transfer more than Rs 200,000 from bank account to another instantly without requiring cheque clearance.

With the implementation of this system, bank customers no longer have to issue cheques to make large payments.  The amount can be transferred straight into the account of the receiver by signing a voucher.

The new system has removed the hurdle of depositing large amount in the receiver’s bank account and then obtaining cheque clearance, which used to be time consuming.

The central bank said that the implementation of RTGS also addresses the problem of check bounce in large transaction.

Currently, amount transfer can be done through mobile banking, internet banking and connectIPS system of Nepal Clearing House Limited (NCHL). However, large transactions are secure and convenient through RTGS system, claimed NRB.

Payment Department chief of Nepal Rastra Bank Bam Bahadur Mishra clarified that the central bank introduced the RTGS system to facilitate payment of large amount in a seamless and secure way.

In the initial phase, the central bank has made it mandatory for commercial banks alone to implement RTGS system. The central bank has already signed an agreement to this effect with all 28 commercial banks of Nepal.

In the second and third phases respectively, the central bank plans to implement this system in development banks and financial institutions.