KATHMANDU: With the implementation of the Real Time Gross Settlement (RTGS) system by Nepal Rastra Bank (NRB), there is no need to draw a check for a payment of more than Rs 200,000.

The central bank on Sunday had signed an agreement with the Chief Executive Officer of all the 28 commercial banks to implement the system. NRB had unveiled RTGS regulations on September 5 and had asked all the commercial banks to implement the system by September 11.

Currently, bank and financial institutions take anywhere between a few hours and two days to clear and settle an interbank check. With the implementation of the system, clearance and settlement can be done within a few seconds.

Bam Bahadur Mishra, head of Department of Payment System at NRB said that it was mandatory to make payment of more than Rs 2 million is mandatory through RTGS.

With the implementation of the system, an account holder doesn’t need to draw a check. Payment can be made to desired bank and account number through an order by the account holder. The account holder will be charged Rs 10 per transaction.

Mishra said that with the implementation of the system, banks can save millions of rupees as they don’t need to print and issue checks.