As part of inclusive digitalization initiative, Bangladesh Bank launched Real Time Gross Settlement (BD-RTGS) system on 29th October 2015 to facilitate safe, secured and efficient interbank payment system. This mechanism has opened a new horizon in the payment ecosystem, accommodating instant settlement of large value and time critical payments in the country. As an electronic settlement, it ensures transfer of funds from one account of a bank to that of another bank on a real-time and on gross basis. Here real-time refers transactions that do not need any waiting period. Transactions are settled as soon as they are executed. It is worthwhile to mention here that, besides customers transaction, BD-RTGS System are fascilating Financial Institution’s transaction, Inland foreign currency transaction, Customs Duty e-Payment, VAT e-Payment and other important Government’s Payments. Needless to say that minimum limit of a transaction is BDT 1,00,000 whereas there is no limit in case of government payment and inland foreign currency transaction.
Initially, RTGS system was operated only in local currency. Later on, inland foreign currency transaction among scheduled commercial banks has been inaugurated on 04th September’2022. In 2022, total 7,977,052 transactions of local currencies has been settled through BD-RTGS System with the Value of ৳5,156,432 Crore. At the same time 156,636 transactions in USD valuing 5,179 million, 54 transactions in Euro valuing 15,822,810 and 8 transactions in GBP valuing 204261 have been settled through BD-RTGS System during the tenure of September’22 to December’22. Moreover 23,38,246 transactions of local currencies valuing 14,06,492 crore, 176,049 transactions in USD valuing 5,221 million, 59 transactions in Euro valuing 10,719,118 and 2 transactions in GBP valuing 3,819 have been settled through BD-RTGS System during the tenure of January’23 to March’23. During the tenure of April 2023 to June 2023 in total of 174,358 transactions of USD and 69 transactions of Euro are settled trough RTGS System with the value of $4891.14 million and €12.43 million respectively.
Replacing paper based transaction system; RTGS system is becoming more popular day by day. Mentionable that more than 11,231 online branches of 60 scheduled commercial banks and 18 Non-Bank Financial Institutes are currently connected to this system. Currently, NBFIs are allowed to conduct FI to FI and bank to FI transactions in BD-RTGS System. An in-depth realization is that, RTGS system may bring about an immense change in the financial sector and set up an epoch-making example in the arena of Bangladesh economy.
Trend of overall transactions through RTGS system is as follows:
|Number of Transaction||Amount(Cr)||Number of Transaction||Amount(Million)|
Month wise transaction (BDT) number and volume graph (November 2022-October 2023):
Month wise transaction (USD) number graph (November 2022-October 2023) is :