NBFIs can use RTGS from June: BB

Non-bank financial institutions (NBFIs) will be able to use the Real Time Gross Settlement (RTGS) system from June this year to ensure faster and smoother transactions, reduce additional cost and increase efficiency.

The decision, announced through a circular issued by the Payment Systems Department of Bangladesh Bank on Tuesday, will allow NBFIs to use RTGS for institutional transactions, but not at customer level.

The circular also stated that, banks and NBFIs currently use EDSMoney platform for interbank dealing. With RTGS, fund settlement among NBFIs and institutional transactions will be faster.

EDSMoney, launched by the central bank last year, provides web-based electronic dealing platform where lenders can only transact short-term funds.

Md Kyser Hamid, managing director and CEO of Bangladesh Finance, told The Business Post that, at present NBFIs settle their transact through banks.

“As a result, they (NBFIs) need to maintain various bank accounts which leads to increased costs and cuts down on efficiency.

Now, RTGS will allow NBFIs to carry out their own transactions, saving both time and money, he added.

With a view to facilitate safe, secured and efficient interbank payment, Bangladesh Bank launched Real Time Gross Settlement (BD-RTGS) system on October 29, 2015 as part of its inclusive digitalization initiative.

However, the RTGS was only accessible to scheduled commercial banks since its inception.