RBI extends timeline for banks to adopt new messaging standards

  • The Reserve Bank of India has extended the timeline for banks till March 31 next year to adopt the new messaging standards in Real-time Gross Settlement, RTGS payment platform. 
  • A new RTGS system was put in place in October this year, requiring banks to adopt ISO 20022 standard messaging formats. Banks are still relying on temporary solution provided by their IT and service providers for conversion of messages. 
  • RTGS systems are funds transfer systems where transfer of money or securities takes place from one bank to another on a real time and on gross basis.
  • RBI said that it has received requests from banks to allow them to continue with the present arrangement till the required modifications were made at the core banking solution at banks' end.
  • The apex bank said that the objective of introducing ISO 20022 standard message format for payment system is to bring about standardisation in the messaging formats for various payment systems in the country and to conform to international standards.
  • The system is meant for large value transactions. The minimum amount to be remitted through RTGS is 2 lakh rupees, while there is no upper ceiling.
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