Large payments only thru e-mode from April

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.