Non-banks can do real-time gross settlement from June 1

The non-bank financial institutions would be able to use real-time gross settlement (RTGS) system—a platform that helps lenders transfer fund on a real-time basis—from June 1, according to a Bangladesh Bank notice.

The minimum limit of a transaction through RTGS is Tk 1 lakh and above, whereas there is no ceiling in the case of government payments.

In order to facilitate a safe, secured and efficient interbank payment system, the central bank introduced the RTGS platform in October 2015 as part of its digitalisation drive.

The central bank in the notice says that both banks and non-banks have been carrying out their dealings of inter-bank call money market through EDSMoney platform since December last year.

The amount of fund settled through the call money market will be transferred through the RTGS when NBFIs are attached to the platform.

EDSMoney provides a web-based electronic dealing platform with features where lenders will transact short-term amounts.

The maturity of the transactions is between one day and a maximum of one year, among themselves.

Different types of transaction, including call money market and inter-bank repurchase agreement (Repo), will be settled through the platform.