The Central Bank of Myanmar (CBM) has planned to practice Real Time Gross Settlement (RTGS) online to transfer money between banks and customers, according to a CBM representative. The online system can save time, but according to the report, banks must build trust between one another.
Currently, a small number of banks use the system amongst one another with guidance from the CBM. Many expect the system to take off in the near future.
“The RTGS system was used between the CBM and other banks as of April when they were transferring large sums of money. Now technical requirements are being satisfied in order to use the system with customers,” said U Mya Than, chairman of Myanmar Oriental Bank.
Adding, “Some banks have practiced this method but not many customers use this system. Therefore, the banks need to advertise it.”
With the foreign banks entering the local market, CBM is planning to practice online systems, while CBM will bid an auction to sell and purchase US dollars with foreign banks in September.