RTGS System Likely To Go Live In A Week

Mumbai, Feb 26: | Updated: Feb 27 2004, 05:30am hrs
The Real Time Gross Settlement System (RTGS) is likely to go live in a week. Reserve Bank of India (RBI) chief general manager (Information Technology) R Gandhi, in his address to delegates at the Gartner BFSI Summit 2004, informed that trial runs and external review of the working of the system are currently underway.

Mr Gandhi in his presentation The Road Ahead appraised delegates of the role of RBI in the governments reform agenda in banking.

Indian Banks Association (IBA) chief executive HN Sinor, in his welcome address, pointed out to the three different categories of banks one category was extremely IT-savvy while the second category had just begun and the third is yet to start.

As we look ahead, technology will make an enormous difference to the banking sector, he said.

IBA chairman and Union Bank of India chairman and managing director V Leeladhar said that the task ahead for banks is immense, and pointed out that banks have to be alert to abuse of systems.

According to Mr Gandhi, regulatory compliance is among the drivers of technology adoption by banks in the next few years. In fact, regulatory compliance will be the single most important driver of business strategy for 2004, he opined.

He attributed this to a series of regulatory requirements like Basel II, International Accounting Standards, Know-Your-Customer requirements, anti-money laundering measures, Code of Corporate Governance etc which require banks to identify, discover, collect, aggregate, analyse and report data. The regulations demand that banks have a centralised ledger, a central repository of data for accurate, uptodate, enterprise-wide information. Unless sophisticated data mining tools, archival and retrieval systems are in place, banks will find it extremely difficult to comply with the recent regulatory requirements.

In his concluding remarks, he observed that banks in India are poised for greater usage of technology as a strategy for increasing efficiency and offer better customer service.