Kathmandu, September 17: Nepal Rastra Bank (NRB) has formally launched a real-time gross settlement (RTGS) system in the country. It allows bank customers to transfer more than Rs 200,000 from bank account to another instantly without requiring cheque clearance.
The launch of RTGS will ensure the clearance and settlement of high-value cheques within a few seconds apart from curbing possible transactions from money launderers and terrorists, according to the central bank.
The central bank has already inked agreements with all 28 commercial banks to adopt the RTGS. It is looking to implemented the very system among other development banks and finance companies within the next few months.
After the real-time gross settlement system is fully implemented, customers will be facilitated able to make payments without issuing cheques.
It would take anywhere between a few hours and two days to clear and settle a cheque that is issued by one bank and deposited at another.
Currently, Nepal Clearing House Ltd (NCHL), a public company established jointly by NRB, banks and financial institutions, among others, is handling all works related to clearing and settlement of cheques, using electronic cheque clearing system.
