SR Mittal, chief general manager of RBI's department of information technology told newspersons on Wednesday that a draft to the effect will be sent to all bank managers within 20 days. The department of telecommunications has already cleared the proposal. The system will offer fund management, real time gross settlement and the balance will be updated within 16 days. The system will also enable banks to get information on clearing and related matters every 15 minutes.

Mittal who inaugurated India Banktech '98 said that such a system has been evolved as 30 centres account for 50 per cent of banking and 100 centres account for 59 per cent of deposits and 72 per cent of credit. He added that RBI will incur the expenses for a hub required for the implementationof this system through VSAT.

Mittal said that a comprehensive Information Technology law, to be shortly cleared by the Union Cabinet and presented before Parliament, will enable digital signatures and smooth fund transfers. The proposed law will give e-commerce a legal status in the country. The laws to be amended as a part of the IT Bill include the India Evidence Act, Indian Penal Code, the General Clauses Act, RBI Act, Bankers Book Evidence Act and India Post Office Act.

Mittal said that his department has been aggressively tackling the Y2k problem and added that it will be executed by March 1999.Meanwhile, Philips launched Bi-Way Intercom System for banking operations at the India Banktech '98 here. The system will make conversation through security glass possible maintaining security and health, said Avinash Mathur, senior manager (marketing and sales).

Mathur told The Financial Express that this product will be marketed to banks in four metropolis and state capital headquarters. This would laterbe extended to airline and travel companies and jewellery shops.