June 2004 date for full-fledged RTGS

Market Measures

 To this effect, the national settlement system (NSS), which would integrate the segmented clearing and settlement infrastructure in the country and enable more effective funds management by banks, is expected to be operational by June 2004.

 Regarding the implementation of Real-Time Gross Settlement (RTGS), the central bank observed that although the commencement has been made in a phased manner, a fully functional RTGS system is expected to be made operational by June 2004. This system would be fully integrated with the integrated accounting system of the RBI.

 In order to graduate to the system effortlessly, banks and PDs are urged to ensure complete readiness in terms of infrastructure, systems and procedures, and adequate trained manpower to effectively participate in the RTGS system.

 Besides, banks should put in place necessary connectivity between their branches and the payment system gateway through which banks will interact with the RTGS system.

 On its part, the RBI would provide collateralised repo based intra-day liquidity support to the participants so as to help the participants meet the likely increase in requirement of intra-day funds for a smooth and timely settlement process. Banks have also been advised to devise strategies for efficient cash flow management.

 Meanwhile, an expert group is being constituted to guide the implementation of the Central Database Management System (CDBMS) set up by the Reserve Bank of India.

 This database is available for access and analysis to users in RBI since December 2002 and it had been proposed by the RBI to place the relevant data in the CDBMS in the public domain.

 Accordingly, the expert group will look into these issues through an assessment of user requirements.