Real Time Rail Payment System is a new system that enables Canadian residents to make payments faster, easier and round the clock. It has the existing payment system features and is ready to encompass innovations.
Real Time Rail Payment System: Introduction
The short form of Real Time Rail Payment System is RTR. IT will act as a platform where you can send and receive payments and money within a few seconds, 24/7 and 365 days a year. The payment once done cannot be cancelled.
This is a brand-new set-up and it will be operated by Payments Canada and supervised by the Bank of Canada. All those who take part in it should adhere to the stern rules and requirements of the Bank of Canada and Payments Canada. This will ensure that the arrangement meets risk management levels.
The users of RTR will be able to access the existing features of payments systems. The set-up is also welcoming and adaptable to the future enhancements in features.
Features of RTR
- Sending and receiving money and making payments is made quicker.
- Transparent
- Accessible 24/7 and 365 days a year.
- Safe and secure
- Payment messages go via account numbers to meet multiple payment needs at the same time.
- Innovative
- All Payments Canada members will be eligible to participate in RTR given that they fulfil the risk-based access criteria.
Advantages of RTR
For the Government
- It is helpful for the Government of Canada to make fast payments within the government itself and to other countries.
- It is easy to make emergency payments during natural calamities, pandemics or any distress.
For Businesses
They need to be tended for transactions to be made by the end of business day as RTR is going to be 24/7.
Payrolls, bonuses and other expenses can be made faster.
Better customer service.
No need to worry about high wire transfer fees or transaction caps.
Better management and control of funds
Automated invoicing and payment process
Space for innovation and creation
For financial institutions such as banks
- Settlement on the same day.
- Seamless process.
- Space to innovate and offer new products and services.
- Reduction in enquiries and manual work.
For Individuals
- Quick and easier tracking of payments
- Can avoid making late payments of utility bills etc
- Easy for family budgeting
- Quick day to day payments such as school fees, rent etc.
Real Time Rail Payment System: Conclusion
The RTR process will be launched with the ISO 20022 financial messaging standard. With every payment, more data is set to support the payment, helping to make the reconciliation process easier and faster. The RTR Is set to launch Canada’s payments system in a better place both nationally and internationally. This now supports existing member financial institutions. Once legislative support is put in place, non-banking payment service providers will be included.