Pan-India cheque truncation system to be implemented by Sep: RBI
Mumbai: In a bid to accelerate clearance of cheques, the Reserve Bank of India (RBI) on Thursday said it has decided to implement a cheque truncation system (CTS) across the country by September this year.
RBI introduced this system in 2010. At present, it is operational in some major cities.
"The CTS, which is currently operational at the major clearing houses of the country, has stabilised well and it has made large efficiency gains. In view of this, a pan-India CTS will be made operational by September 2020," according to the Statement on Developmental and Regulatory Policies released by RBI.
Observing that digital payments in India have been growing rapidly, RBI said a digital payments index (DPI) will be launched soon.
The Reserve Bank shall construct and periodically publish a composite DPI to capture the extent of digitisation of payments effectively, it said.
"The DPI would be based on multiple parameters and shall reflect accurately the penetration and deepening of various digital payment modes. The DPI will be made available from July 2020 onwards," it said.
With substantial growth in digital payments and maturity gained by entities in the payment ecosystem, it is desirable to have a self-regulatory organisation (SRO) for orderly operations of the entities in the payment system, it said.
The Reserve Bank will put in place a framework for establishing an SRO for the digital payment system by April 2020 with a view to fostering best practices on security, customer protection and pricing, among others, it said.
The SRO will serve as a two-way communication channel between the players and the regulator/supervisor, it added.
To give a fillip to digital banking and enabling regional rural banks (RRBs) to provide cost effective and user-friendly solutions to their customers, it has been decided to allow RRBs, like other commercial banks, to act as merchant acquiring banks, using Aadhaar Pay BHIM app and POS terminals.
Detailed instructions in this regard will be issued later in the day.
In continuation of efforts to facilitate interoperability of government securities depositories, as announced in the Union Budget 2019-20, the RBI will modify its government securities registry (the PDO-NDS system) to include constituent details in the Constituent Subsidiary General Ledger (CSGL) accounts.
This is expected to fuel interest of retail investors to invest in government securities, it said, adding, the upgrade is expected to be made operational by end of July 2020.
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New safety wristbands launched for children at Makkah’s Grand Mosque
Riyadh: Authorities in Saudi Arabia have introduced a new safety measure to protect the youngest visitors at the Grand Mosque in Makkah by distributing free identification wristbands to families.
This initiative, led by the General Authority for the Care of the Affairs of the Grand Mosque and the Prophet's Mosque, aims to prevent children from getting lost in the massive crowds and ensures they can be quickly reunited with their guardians if they wander off. By providing a simple way for staff to contact parents immediately, the program offers peace of mind to pilgrims during the busy Umrah and Hajj seasons.
The process for obtaining a bracelet is straightforward and designed for convenience, as families can pick them up directly upon arrival at the mosque’s main entrances. There is no need for online registration or any advance payment, as the service is completely free.
According to reports, dedicated desks have been set up at major entry points, such as the King Abdulaziz Gate and King Fahd Gate, where staff members help parents fill out the necessary details.
The child’s name and a guardian’s mobile phone number are recorded on the band, which is then securely fastened to the child’s wrist before they enter the prayer areas.
While the system is available for all visitors, officials especially urge parents to use it during peak times like Ramadan or the annual Hajj pilgrimage when the crowds are most dense.
