Bangladesh Bank will launch Real Time Gross Settlement system, which is to provide speedy services in large transactions, in October on pilot basis, said a top official.
“RTGS system will be launched in October on a pilot basis to see how it functions,” M Aslam Alam, secretary to Bank and Financial Institutions Division, told Dhaka Tribune after a meeting held to assess progress of the project works yesterday.
M Aslam Alam presided over the meeting which was told that though the project was scheduled to be formally launched in January next year, the time might be extended to March.
The RTGS can be defined as the continuous (real time) settlement of fund transfers individually on an order by order basis (without netting).
“Real time” means the processing of instructions at the time they are received rather than sometime later while “gross settlement” means the settlement of fund transfer instructions occurs individually (on an instruction by instruction basis).
