Bangladesh Bank has launched RTGS (Real Time Gross Settlement) service in Bangladesh on October 29. Standard Chartered Bank executes first ever transaction of RTGS launched by Bangladesh Bank. Dr Atiur Rahman, governor of Bangladesh Bank, launched RTGS at the central bank head office by overseeing the live transaction carried out between Standard Chartered Bank Bangladesh and United Commercial Bank Limited (UCBL). RTGS is an advanced technology that facilitates interbank fund transfers on real time basis, for both local and foreign currency transactions. Participating banks will be able to transfer funds on “real time” and on “gross” basis. Settlement in “real time” means transaction is not subjected to any waiting period. “Gross settlement” means the transaction is booked in central bank’s (Bangladesh Bank) account on one-to-one basis without netting with any other transaction. BD-RTGS will accommodate only credit transfers from participating banks.
During the launching of RTGS service, Dr Atiur Rahman said: “To cope with the changes of time, our banking sector has embraced new technologies very promptly. RTGS is a great achievement for the banking sector of Bangladesh which should also be treated as a landmark in the achievement of dream of Digital Bangladesh of the current government. The system will have a substantial impact on current operations in the banks, particularly in the area of treasury, payment division, corporate banking and cash management.”
Imtiaz Ibne Sattar, chief finance officer and acting chief executive officer of Standard Chartered Bangladesh mentioned: “We are really proud to be connected to Bangladesh Bank RTGS platform. Standard Chartered Bank has been a pioneer in the use of technological platforms in Bangladesh. As the bank that introduced the first ATM and credit cards in the country, we are very proud to have been involved in-depth with the digitalisation initiatives of Bangladesh Bank under the leadership of the governor, including BACH, BEFTN, CIB automation processes and once again delighted to be the first bank in executing the RTGS transaction and going live with RTGS.”
RTGS is expected to help boost business to business (B2B) transactions, along with other general transactions by enabling instant settlement of high value local currency transactions, as well as government securities and foreign currency based transactions.
