Newsflix Bharat Agencies : The Real-Time Gross Settlement System (RTGS) may soon expand to facilitate transactions in major trade currencies, including the US dollar, euro, and pound sterling. Currently operated by the Reserve Bank of India (RBI), RTGS enables real-time fund transfers between banks. RBI Governor Shaktikanta Das has indicated that the central bank is exploring the possibility of broadening the RTGS’s scope through bilateral or multilateral arrangements.
This expansion aims to enhance access to more affordable cross-border payments and remittances, addressing the high costs currently associated with such transactions. In September 2023, Deputy Governor T. Rabi Sankar described the prevailing expenses related to cross-border remittances as “simply unconscionable.” An expanded RTGS could significantly reduce costs and expedite the transfer process.
At the RBI@90 conference in New Delhi, Das highlighted that “India and several other economies have already begun efforts to link cross-border fast payment systems in both bilateral and multilateral formats.”
Furthermore, Das underscored the potential of central bank digital currencies (CBDCs) in promoting efficient cross-border payments. He pointed out that achieving this goal would require the harmonization of standards and interoperability among various systems. While nations may design their systems based on domestic priorities, Das proposed the development of a plug-and-play system that would allow countries to replicate India’s successful model while preserving their sovereignty.
This initiative signals the RBI’s commitment to fostering a more efficient and cost-effective framework for international transactions.
