December 6, 2022

Automated RTGS Payment Reconciliation Software Benefits For Financial Institutions

AUTOMATED RTGS PAYMENT RECONCILIATION SOFTWARE BENEFITS FOR FINANCIAL INSTITUTIONS  The fast-evolving payment industry has a high impact on the financial markets. India is expected ...

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The fast-evolving payment industry has a high impact on the financial markets. India is expected to launch RTGS 24 x 7 on 14th Dec 2020 after NEFT 24×7. This will make India 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 for payments in India, began its operations on March 26, 2004, with a soft launch involving four banks, and presently handling 6.35 lakh transactions daily for Rs’ value. 4.17 lack crore across 237 participating banks. However, 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. As a result, it can be used to improve India’s 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 number of high-value transactions. Therefore, 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 affects the reputation of the bank. Thereby, the requirement for effective dispute management is undeniable. Thus, automated payment reconciliation software uses pre-defined match rules for identifying disputes accurately & addresses them in no time. As a result, 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   

Before the next cycle starts Reconciliation ensures payment transactions are settled. The cycles of RTGS transactions reconcile automatically within a short timeframe. After reconciling payments and receiving them, the net settlement amount is updated. However, there are multiple requests for cycles in a day. Therefore, automated payment reconciliation software performs cycle-wise reconciliation before generating daily settlements.

Better Liquidity Management Everyday  

One of the key purposes of opting for automated payment reconciliation software is to enhance liquidity management efficiency. As a result, Round the clock, RTGS transactions increase intraday cash movements. The payment reconciliation software routinely performs intraday reconciliation to enhance the liquidity reserve of the bank’s funding system. As a result, The functionality also has a significant impact on improving the system’s operational efficiency.    

No Manual Intervention in the Entire RTGS for payments in India

Often observed, handwritten inputs often cause delays in the reconciliation process. As a result, increase the risk of accounting system errors. Therefore, Implementing payment reconciliation software automates the entire reconciling process without the intervention of human resources. As a result, It saves time and effort for other high-priority work.    

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!