The Reserve Bank of India plans to come up with an approach paper soon to encourage migration of high-value cheques clearing operations to electronic platform, its Deputy Governor Shyamala Gopinath said today.
This will help significantly reduce the clearing time required for high-value transactions, besides minimising related risks, Gopinath said at a CII-organised seminar here.
On an average, India's central bank handles around 60,000 Real Time Gross Settlement (RTGS) and around 50-lakh cheque clearing transactions per day, Gopinath said.
The central bank has plans to shift all retail payment and settlement activities except RTGS transactions to a separate entity - National Payment Corporation of India.
RBI, which at present handles all payment and settlement activities, recently deputed its Chief General Manager A P Hota as the interim CEO of NPCI.
The apex bank was also planning to implement the cheque truncation system (CTS) in other parts of the country in the near future, Gopinath said.
Using CTS, banks can send images instead of paper cheques for the purpose of clearing and settlement.