PAD.MRO.CH.No.3214/12.02/2004-05
October 19, 2004
All members of Real Time Gross Settlement System And
All member banks of Brihan-Mumbai Bankers Clearing House
Dear Sir,
Closure of Inter-Bank Cheque Clearing System in Mumbai
As you are aware, the Real Time Gross Settlement
(RTGS) System was made operational in Mumbai with effect from March 26, 2004.
In view of its very smooth operation during the last six months and immense
popularity among the members (92 as on date), more than 95% of the aggregate
value of inter-bank transactions in Mumbai is now being settled on the RTGS
platform. This has made the present physical Inter Bank Cheque Clearing System
in Mumbai virtually redundant.
2. With a view to imparting greater efficiency
to the overall payments and settlement system and doing away with a separate
infrastructural and operational arrangement associated with a parallel cheque
clearing system, it has been decided, through a due consultative process with
bankers, to close the present Inter Bank Cheque Clearing System in Mumbai with
effect from November 1, 2004. However, the following three options will still
be available to banks which do not wish to become a Type ‘A’ member of RTGS
or which are not eligible to become RTGS members in view of their non-scheduled
status.
- Eligible banks can become an RTGS type ‘C’ member and route
their inter-bank transactions through a type ‘A’ member;
- Banks can send their inter-bank transactions as a customer
of a type ‘A’ RTGS member; and
- Banks may also use the High Value Cheque Clearing System
for settling their inter-bank transactions.
3. All concerned are requested to please note
the above change to be effective from November 1, 2004.
Yours faithfully,
(A.K. Bera)
General Manager (Banking)
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