As soon as the markets opened at 9 AM, the first transaction valued at Rs 10 crore was conducted for Hindustan Lever Ltd by the bank by crediting Hindustan Levers (HLL) account in the State Bank of India (SBI). This transaction marks the commencing of RTGS operations in Mumbai, and brings together the countrys largest domestic bank (SBI), the largest international bank (StanChart) and a multi-national corporation (HLL) in an important development in the settlement system in India, said StanCharts regional head-global markets, MA Ravi Kumar.
We believe that to truly lead the way in Asia, Africa and the middle-East our core markets we must be at the forefront of technological innovation, said StanChart Plcs wholesale banking chief executive officer, Mike Rees.
A total of 10 transactions valued at Rs 75 crore was completed on the first day of operations. With the implementation of RTGS, India has joined the worlds developed economies in establishing a domestic payments platform that would eliminate settlement risk and facilitate working capital management for corporate customers, said the banks group head, client relationship (wholesale banking) Jaspal Bindra.
The RTGS, first demonstrated in November 2003, is a safe and reliable fee-based payment system which enables customers to conduct large transactions quickly and efficiently with minimal paperwork. The transactions occur within a single enabling faster realisation of receivables and lowers transaction processing costs. While RTGS is offered only to corporates at present, in due course of time the retail customer will also be able to avail of this system. The participating banks include SBI, StanChart, Saraswat Bank and HDFC Bank.