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— Paul Noronha

2,001 under core banking: Mr V. Leeladhar, Deputy Governor, Reserve Bank of India (left), with Mr M.V. Nair, Chairman and Managing Director, Union Bank of India, at a function to announce the rollout of its 2,001st CBS branch and launch of three new technology-based initiatives for customer convenience in Mumbai on Monday.

Our Bureau

Mumbai, Feb. 18 Payments of Rs 1 crore and above between banks, NBFCs, primary dealers and any other entities regulated by the Reserve Bank of India may be allowed only through electronic mode from April 1.

Mr V. Leeladhar, RBI Deputy Governor, said here on Monday that all such payments above the cut-off point done between parties regulated by the RBI should be through Real Time Gross Settlement or National Electronic Fund Transfer.

The new guidelines will also be applicable to participants in the RBI-regulated markets such as foreign exchange, money and Government securities markets.

The move will not only reduce risk from moving large paper-based value retail payments to safer electronic modes, but will also bring greater efficiency and customer convenience to the payment systems.

Mr Leeladhar was speaking after inaugurating Union Bank of India’s 2,001st branch under core banking solution in Mumbai. All RBI-regulated entities in the RBI-regulated markets would come under the proposed norms, he said.

Currently, he said, there are 40,000 bank branches available on RTGS in India across 500 cities. Over 39,000 branches are linked through NEFT.

Mr Leeladhar said from April 1, 2008, charges for using other bank ATM have been capped at Rs 20 per transaction and it would be free from 2009.

Mr M.V. Nair, Chairman and Managing Director, Union Bank of India, said the bank has covered 2,001 branches under its core banking solution network, thereby brining nearly 90 per cent of the bank’s business under CBS.

He said the bank has implemented CBS in 500 branches in less than five months time. The bank also introduced an online grievance redressal cell to help its customers.

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Large payments only thru e-mode from April

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