The GCC RTGS system – a platform designed to link all GCC local RTGS systems together to process and settle cross-border payments in GCC region on real time basis – is expected to go live by February 2020, according to the Central Bank of Oman (CBO).
The apex bank made the announcement following the hosting of a seminar on this key initiative in Muscat last week. The seminar was conducted by the Gulf Payments Company (GPC) in co-ordination with Central Bank of Oman and the banking community of GCC region.
The new cross-border payments system will replace the current existing mechanism of processing cross-border payments, which is found to be time consuming, complex and ineffective cost-wise.
The new system is expected to further enhance the security and efficiency of cross-border payments across the region and significantly reduce transaction processing time and cost. The new system will also contribute in the development of appropriate infrastructure facilitating the clearing and settlement of financial operations. It will also strengthen the regional market and promote the integration of financial markets in the GCC countries. GCC cross-border annual payments flows are as high as over $2 trillion made through about 2.3 million transactions.
The objective of the seminar was to introduce the GCC-RTGS system to all the participants, elaborate on its various operational and technical details, and also discuss the roles and responsibilities of the participating banks in this regard.
Opening the deliberations Dr Qais al Yahyai, Executive Vice President, Central Bank of Oman, outlined the significance and role of the GCC-RTGS System and GPC. In the address, he also made reference to the feasibility study that was conducted earlier to examine the idea of establishing a common Gulf Payment Platform.
Hashem al Hekail, Deputy Governor Financial Sector Development, Saudi Arabian Monetary Authority, held a presentation explaining the key drivers and the challenges of the GCC region in hosting a cross-border integrated payments system.
Ali al Homidan Chief Executive Officer of GPC, provided a comprehensive overview about GPC and the upcoming GCC-RTGS System. The GPC team also provided details of the business, operational and technical aspects of GCC-RTGS System. The seminar was attended by senior representatives of all GCC Central Banks alongside 300 other delegates hailing from different commercials banks in the GCC region.
Taking cognizance of the efforts being rendered to establish an efficient cross border payments and settlements platform in the GCC region, the Supreme Council of the Gulf Cooperation Council (GCC) in its 37th session approved the establishment and operation of a common payment platform for linking payment systems in the GCC countries.
GCC Payment Systems Company (GPC) is an established entity with a fully functioning organisation that provides a safe, efficient, and cost-effective cross-border payments facility while leveraging cutting edge technologies in accordance with international standards and best practices. GPC will be responsible for managing and operating GCC-RTGS system and for providing other related payment services to the banking industry in GCC. GPC is owned and funded by the six Central Banks of the GCC countries and its headquarters is located in Riyadh, Saudi Arabia with a branch in Abu Dhabi, UAE.
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