An analysis of BD-RTGS of Agrani Bank Limited

Abstract

This report is about the implementation of the Real Time Gross Settlement (RTGS) system in the banking sector of Bangladesh. The bank which has been focused on investigating this topic is government owned Agrani Bank Limited (AB). Agrani Bank Limited was a nationalized commercial bank in 1972 after the independence of Bangladesh. It started functioning as a going concern basis through a Vendors Agreement signed between the ministry of finance and Government of the People's Republic of Bangladesh on behalf of the former Agrani Bank. There are three areas of Agrani Bank Ltd. (Mohakhali Corporate Branch). They are- General Banking, Foreign exchange and loan &Advance section. The General Banking section deals with- collecting cash, clearing check, account opening, NFT, BEFTN, RTGS, security and bank Pay Order. Foreign exchange section deals with import and export cash payments. Lastly, loan & advance section deals with Staff loan, Cash Credit and Project loan. Agrani Bank has implemented the Real Time Gross Settlement system as a part of their financial transaction process after Bangladesh Bank introduced it in 2015. This report investigates the full impact of this integration in the bank in question. The findings from the report show that, RTGS system has been significantly impactful for the bank and gave their clients a very useful option of conducting their day to day one off important transaction instantly. It has been a better upgrade from its previously used system as the new system adds a lot of benefit for both the bank and their clients. However, the system still faces some challenges from technical issues and lacks skilled operators who can solve them. All in all, RTGS helped Agrani Bank Limited to keep up with the technological changes in the financial sector of the country.