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Press Coverage- Banknet India Conference on Payment Systems in banks
(Banknet India Conference on Payment Systems in banks was covered by The Economic Times, Business Standard, Hindu Business Line, Financial Express, Times of India, Free Press Journal , UNI, BSNL, deepika.com, myiris.com, CXOtoday.com, domain-b.com, CTV, Sahara TV, In Mumbai etc)
RBI working on 'payment' rules
TIMES NEWS NETWORK
The Economic Times-MAY 28, 2005
THE Banknet India Conference on Payment Systems in banks, which concluded recently, discussed and debated on Technology and Payment Systems, Cheque Truncation System, Real Time Gross Settlement (RTGS), Cash Management, Internet Banking, Mobile Banking, ATMs.
Anurag Khanna, CEO of Banknet India, in his welcome address highlighted the importance of the Payment and Settlement Systems for banks.
RB Barman, executive director, RBI, announced that the RBI is planning to introduce T+0 settlement for electronic clearing systems in Mumbai by mid-August. Currently, bulk cash settlements for payment of dividend warrants and corporate salary payments take two days (T+2). The RBI is also working with the Centre to draft a comprehensive legislation on payment system. The Payment System Bill will give the central bank powers to form regulations for the payment industry.
Cheque truncation will be introduced in the National Capital Region (NCR) by March ’06, following which it will be rolled out in Mumbai, Chennai and Kolkata, said Mr Barman.
The RTGS system, which was launched in March ’04, enables online clearing and settlement of payments on a real-time basis. At present, around 4,934 bank branches are under RTGS at 399 centres, and daily transactions worth Rs 44,000 crore are routed through RTGS. About 10,000 bank branches will be covered under the RTGS network by March ’05.
The IBA, together with member banks, will form a company that will act as an umbrella organisation for operating all retail payments and settlement systems in India. “The company will act as a holding body and the 1,050 clearing houses will act as franchisees,” said Mr Barman.
AP Hota, chief general manager, DPSS, RBI, highlighted the mission of the central bank for the establishment of safe, secure, sound and efficient payment and settlement systems for the country.
Suresh Rangarajan, COO, TimesofMoney.com elucidated the impact of technology on cross-border remittances and new-age payment solutions, in a global economy.
He further emphasised that the electronic payment revolution has drawn unbanked citizens into mainstream financial services.
Nageshwar Rao, CEO, IDBI Bank stressed on the importance of efficient payment system in banks to speed up the liquidity flow in the economy and to create a momentum for economic growth.
The conference was organised by Banknet India, promoted and managed by senior bankers. Banknet India is an IT-focused banking research company and has been associated with more than 25 major banking and technology events.
Banknet India manages banknetindia.com, India’s only banking & technology portal with 50,000 plus subscribers. It is ranked among the top 25 banking sites and top 20 banking technology sites and resources online in the world.
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RTGS to cover 10,000 bank branches by 2006
The Hindu Business Line
Mumbai , May 20
THE Reserve Bank of India has set a target for providing the real time gross settlement coverage to 10,000 branches and 500 centres by March 2006.
Currently, 4,917 branches and 500 centres have RTGS. This system sees transactions close to Rs 50,000 crore a day.
Speaking at a conference on payment systems organised by Banknet India, Dr R.B. Barman, Executive Director, RBI, said that the central bank was addressing the issue of connectivity of payment channels across the country.
With the `National Electronic Fund Transfer Extended', 90 per cent of transactions will be covered, he said. The central bank also plans to introduce an automated clearing house system, a pilot project in Mumbai by mid-August wherein the transaction time will be reduced. T+2 will be converted to T+0 for settlement and credit, and T+1 in the case of returns.
Dr Barman, in his keynote address, said that India has developed a payment system in a fragmented way. There is a lack of shared network facility among ATMs and much of India remains outside the modern system of payments, he said.
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Banknet conference on payment system
TIMES NEWS NETWORK
The Times of India-MAY 28, 2005
Banknet India Conference on Payment Systems in banks, which concluded recently discussed and debated on Technology and Payment Systems, Cheque Truncation System, Real Time Gross Settlement (RTGS), Cash Management, Internet Banking, Mobile Banking and ATMs.
More than 25 CTOs, CEOs and Business Heads from major banks, technology vendors and Top officials from Reserve Bank's Department of Payment and Settlement Systems (DPSS) addressed 250 senior level bankers and IT professionals from more than 90 organisations.
Anurag Khanna CEO of Banknet India in his welcome address highlighted the importance of the Payment and Settlement Systems for banks. He added that if managed through a clear, coherent strategy, payments can be a real source of competitive advantage and consistent profitability for banks.
Dr RB Barman, Executive Director, Reserve Bank of India announced that the RBI is planning to introduce T+0 settlement for electronic clearing system in Mumbai by mid-August. Currently, bulk cash settlements for payment of dividend warrants and corporate salary payments take two days.
RBI is also working with the Centre to draft a comprehensive legislation on payment system. The Payment System Bill will give the apex bank powers to form regulations for the payment industry
Cheque truncation will be introduced in the National Capital Region (NCR) by March 2006, following which it will be rolled out in Mumbai, Chennai and Kolkata.
The RTGS system, which was launched in March 2004, enables online clearing and settlement of payments on a real-time basis.
At present, around 4,934 bank branches are under RTGS at 399 centers and daily transactions are worth Rs 44,000 crore route through RTGS. 10,000 bank branches will be covered under the RTGS network by March 2005.
Indian Bank's Association (IBA), in association with member banks, will form a company that will act as an umbrella organisation for operating all retail payments and settlement systems in India. "The company will act as a holding body and the 1050 clearing houses will act as franchisees," said Reserve Bank of India executive director Dr RB Barman.
IBA has formed a working group which has representatives from public sector banks, private banks, foreign banks and co-operative banks and will decide on the nature and the model of the company.
Number of banks including ICICI Bank, Citibank, Standard Chartered Bank and 12 public sector entities are likely to pick up stake in this company.
AP Hota, Chief General Manager, Department of Payment and Settlement Systems, RBI highlighted the mission of the central bank for the establishment of safe, secure, sound and efficient payment and settlement systems for the country.
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ACH for T+0 settlement to be in place: RBI
UNI
Mumbai, May 20
An Automatic Clearance House (ACH) would be floated for the T+0 settlement through Electronic Clearance System (ECS) for which a pilot project is already being carried out in Mumbai, RBI Executive Director Dr R B Barman today said.
The project would be completed by August this year, he added.
On the sidelines of Banknet India conference on 'Payment systems in banks', Mr Barman told mediapersons here that a consortium of banks would pool funds to finance the ACH, while the RBI would play a regulatory and supervisory role in this regard.
Flanked by RBI general manager Sudhakar, Mr Barman said the T+O system would be used for the local and T+1 for inter-city clearance.
The ECS was used in T+5 settlement in the begining which would be converted into T+0 settlement, he said.
Mr Barman said the Real Time Gross Settlement (RTGS) system for market operations would be in place in 10,000 bank branches by March, 2006, out of the total bank branches of 67,000 bank branches existing in the country. He said the RTGS was already in place in 4,917 branches at 399 centres since March, 2004. The Straight Through Process (STP) facility was also available in these branches, he said.
The executive director said, ''More than 80 per cent of the bank transactions would be done with the achieving of the target of 10,000 bank branches.'' The RTGS facility was not available in the rural areas due to the lack of connectivity, he added.
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RBI to cover 10,000 bank outlets under RTGS
IRIS NEWS DIGEST
21 May 2005
The Reserve Bank of India has set a target for providing the real time gross settlement (RTGS) coverage to 10,000 branches and 500 centres by March 2006, according to announcement made at Banknet India Conference on Payment Systems in banks.
According to sources, 4,917 branches and 500 centres have RTGS. This system sees transactions close to Rs 50,000 crore a day. The central bank is addressing the issue of connectivity of payment channels across the country.
With the `National Electronic Fund Transfer Extended`, 90 per cent of transactions will be covered. The central bank has also planned to introduce an automated clearinghouse system, a pilot project in Mumbai by mid-August wherein the transaction time will be reduced. T+2 will be converted to T+0 for settlement and credit, and T+1 in the case of returns, sources added.
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RBI: RTGS system to cover 10,000 branches by 2006
Domain-B
Mumbai
The Reserve Bank of India has set a target for providing Real Time Gross Settlement (RTGS) coverage to 10,000 branches and 500 centres by March 2006. Currently, 4,917 branches and 500 centres have RTGS.
The RTGS system sees transactions close to Rs50,000 crore a day.
Speaking at a conference on payment systems organised by Banknet India, Dr R.B. Barman, Executive Director, RBI, said that the central bank was addressing the issue of connectivity of payment channels across the country. With the `National Electronic Fund Transfer Extended', ninety per cent of transactions will be covered, he said.
The central bank also plans to introduce an automated clearing-house system, a pilot project in Mumbai by mid-August wherein the transaction time will be reduced. T+2 will be converted to T+0 for settlement and credit, and T+1 in the case of returns.
Dr Barman, in his keynote address, said that India has developed a payment system in a fragmented way. There is a lack of shared network facility among ATMs and much of India remains outside the modern system of payments, he said.
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Banknet Highlights Payment Systems Technology
By Sunil Kumar- CXOtoday
Mumbai, May 24, 2005
The Banknet India Conference on payment systems, which concluded recently threw light on several pertinent issues, which CIOs in the banking sector are currently facing, right from RTGS implementation to the changes in the banking industry.
Speaking to CXOtoday, Jo Spencer, principal consultant, LogicaCMG, who discussed real time gross settlement in India said, "LogicaCMG has developed a comprehensive RTGS readiness solution for India. The solution is flexible to individual bank needs while also ensuring effective operational support and also offering treasury support for intra-day liquidity management."
According to him, the RTGS readiness solution comprises of two components that can be taken up separately or together as required by the bank. The Quaestor Payments Hub (QPH) would provide flexible integration and operational support for the management on messages from multiple bank systems to the RTGS system. On the other hand, the Quaestor Liquidity Manager( QLM) offers real-time liquidity management, liquidity prediction and treasury control of transactions settled in the RTGS system.
However, Deepak Patil, CEO of Shamrao Vithal Bank expressed his concern that being a small co-operative bank he was RTGS skeptic. According to him, he could not think as big in comparison to banking networks like the RBI and the SBI.
Meanwhile, V. Babu, deputy general manager-IT, Bank of India, stated that RTGS was a difficult subject and educating customers would be a problem. He also mentioned that cost effectiveness was a problem in implementing these solutions. According to him, migrating from legacy systems also was difficult. "Business Process Reengineering or investing in IT is a continuous process and there is no end to human perfection," added Babu.
Subsequently in an interactive Q& A session, a query was raised pertaining to the integration of RTGS system with RBI and also the issue of float, which banks face. In response, S. N. Panda, deputy general manager, RBI, said that float and pricing were the result of an ineffective payment system. He also said that there would be a technical working committee on RTGS where the whole issue would be discussed threadbare.
In a session on Technology and Payment Systems, A. Kathpalia, Gp- head operations, technology & finance, Kotak Mahindra Bank gave an account of the integration of technology with payment systems.
Says Kathpalia, "A comprehensive payments system is a holistic approach, which would cover the entire gamut ranging from cash management system to payment services. Also, the payment process would be ancillary to individual profit centers in the enterprise. In the modern scenario, a payment system should be one, which would make economic sense ranging from refund of IPOs to a better electronic clearing system. Outsourcing would mean selective smart sourcing and the payment system should seamlessly integrate with the MIS."
According to Ravishankar, country head- direct banking, Yes Bank, "The fastest way to expedite payments was not through a bank. You need to leverage payment systems and bring about a proprietary payment system."
He further mentioned that the RBI needs to encourage open participation in RTGS. The apex bank should play a strategic role and encourage more efficient straight through processing. According to him, inefficiencies in the system need to be resolved. Banks should take cognizance of the entire banking network while bringing about a change, said Ravishankar.
In a forum discussion that followed, M. S. Rangarajan, vice president-IT, Unit Trust of India expressed the view that corporates need to adopt a holistic approach and a daily collection mechanism needed to be put in place.
Speaking about the changes in the banking sector, Devasish Ghosh, head- organization and methods, BNP Paribas, said that a big change was imminent in the banking sector and a paradigm shift is visible in the way the banking sector is heading in India. The tangible benefits would be in expediting salary payments thus leading to overall customer delight.
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Reserve Bank of India (RBI) announces major initiatives related to Payment Systems in Banks
... Read More
UPGRADATION OF PAYMENT SYSTEMS, A NEW PRIORITY FOR BANKS IN INDIA ... Read More
More than 25 CTOs, CEOs and Business Heads from major banks, technology vendors and Top officials from Reserve Bank's newly formed Department of Payment and Settlement Systems (DPSS) addressed 250 senior level bankers and IT professionals from more than 90 organisations... Read More
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