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The Reserve Bank of India (RBI) is set to introduce the revamped real-time gross settlement (RTGS) system on October 19 to facilitate online real-time settlements of payments.
The RTGS system would process transactions such as inter-institutional/inter-bank transactions — the transfer of funds between two members/participants —RBI said in a statement. It would also deal with customer transactions — funds transfer/receipt on behalf of the customer of an RTGS participant member.
Government transactions —transfer/receipt of funds on behalf of government accounts by a participating member — would also be carried out. Broadly, four types of participants use the RTGS system— the central bank, regular participants such as banks, restricted participants such as primary dealers and clearing houses.
