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Automated RTGS Payment Reconciliation Software Benefits For Financial Institutions

Payment Reconciliation


The fast-evolving payment industry has a high impact on the financial markets. After NEFT 24×7, RTGS 24 x 7 is launched in India from 14th Dec 2020. India will become one of the few countries in the world to operate its RTGS system round the clock throughout the year. This comes within a year of operationalizing NEFT 24x 7 by the Reserve Bank of India.

The RTGS (real-time gross settlement) system, began its operations on March 26, 2004, with a soft launch involving four banks, presently handles 6.35 lakh transactions daily for Rs’ value. 4.17 lack crore across 237 participating banks. The average ticket size of RTGS in November 2020 was Rs. 57.96 lakh, making it a truly large-value payment system. RTGS uses ISO 20022 format, which is the best-in-class standard (SFMS) for financial transactions. The feature of positive confirmation for credit to beneficiary accounts is available in RTGS.

Round the clock availability of RTGS will provide extended flexibility to businesses to effect payments and introduce additional settlement cycles in ancillary payment systems. This can also be leveraged to enhance operations of Indian financial markets and cross-border payments.

Failure of payments, clearings, and settlement obligations hurt the business. Thereby, organizations are adopting automated payment reconciliation software for maximizing their functional efficacy.  

Please find below how an automated RTGS payment reconciliation solution improves financial institutions’ reconciling process       

Accurate Matching of High-Value Transaction  

With the newly launched round the clock RTGS payment system, businesses expect a boom in the payments industry. The availability of 24×7 service surge up the numbers of high-value transactions. Timely matching of these transactions has become the need of the hour. AI-algorithm of automated payment reconciliation software enables banks to match all the transactions with utmost accuracy and detect discrepancies.    

Automated Dispute Management

Higher number & value of RTGS service availability throughout the year, in most cases, enhance possibilities of transaction disputes. This issue has a considerable impact on business finances and also affect the reputation of the bank. Thereby, the requirement of effective dispute management is undeniable. This automated payment reconciliation software uses pre-defined match rules for identifying disputes accurately & addresses them in no time. Integrating this AI-enabled reconciliation software supports financial institutions to have an advantage of proactive dispute management before customers raise the issue.          

Accuracy in Daily Settlements   

Reconciliation ensures that the payment transactions are settled before the next cycle starts. The cycles of RTGS transactions reconcile automatically within a short timeframe. The net settlement amount gets updated after reconciling payments and received. Multiple cycles are requested in a day. Thus, cycle-wise reconciliation has been performed with an automated payment reconciliation software before generating daily settlements. 

Better Liquidity Management Everyday  

One of the key purposes of opting for an automated payment reconciliation software is enhancing liquidity management efficiency. Round the clock, RTGS transactions increase intraday cash movements. The payment reconciliation software ensures that the bank’s funding system’s liquidity reserve gets optimized regularly through intraday reconciliation. The functionality also has a significant impact on improving the system’s operational efficiency.    

No Manual Intervention in the Entire System  

It is observed that manual inputs in the reconciling process often causes delay and enhances the possibility of errors in the accounting system. Implementing a payment reconciliation software automates the entire reconciling process without the intervention of human resources. It saves time and efforts for other high priority works.    

Ascent is working with global enterprises in the financial industry & improving its payments reconciliation system. To know more, connect with our team of experts through the Contact Us page. For consultation on upgrades & implementing our automated reconciliation solution, schedule a demo today! 

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