The Central Bank of Nigeria (CBN)
has introduced a new payment system called Real-Time Gross settlement (RTGS)
system as part of efforts to implement Payment System Vision (PSV)2020
strategy.
Mr Tunde Lemo, CBN Deputy Governor
(Operations), made this known while briefing newsmen on Thursday in Abuja.
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| CBN HQTS. ABUJA |
The News Agency of Nigeria (NAN)
reports that Lemo, who is expected to proceed on retirement on January 11, said
that CBN put live operations to the new system on December 16, 2013.
He said that the new RTGS was
integrated with Scrip less Security Settlement System (SSSS) and would replace
the old payment system in use since seven years ago.
“The SSSS, on the other hand, is a
new initiative to issue, manage and settle government and other money market
securities processed as electronic records in a Central Securities Depository
(CSD) system.”
He explained that the RTGS was an
inter bank payment infrastructure that was facilitating the real time settlement
of electronic funds transfers on gross and irrevocable basis.
Lemo said that RTGS was built on
swift standards to allow for safer, easier and faster inter connectivity with
other payment system infrastructure both locally and internationally.
“It serves as the nucleus of the
national payment system, as all payments finally settle in central bank money
through settlement accounts maintained for designated financial institutions.”
On SSSS, he said it would facilitate
the electronic management of the entire life cycle of securities transactions.
He said that the system would manage
the primary and secondary market securities and facilitate efficient open
market operations.
Lemo said that the integration of
RTGS and SSSS was a major strategic move with lots of benefits.
The benefits, he said, included
reduction of settlement and systemic risks in payment system and provision of
collateral management platform to mitigate settlement risks.
”Achievement of instant value for
and by bank customers via Straight Through Processing (STP) as funds transfers
are transmitted from one party to another without manual intervention,’’ he
said.
He said that it would provide
efficient payment landscape that would encourage foreign investments and
enhance financial inclusion.
Lemo said that the RTGS and SSSS
payment system would help improve all retail payment schemes.
He said that it would help to
achieve PVS 2020 objectives and meet world class standards as indicated in the
principles for financial market infrastructure.
Lemo said that it would also trigger
rapid transformation development in the financial market, among others. (NAN)
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