Bangladesh's real-time gross settlement (RTGS) system achieved a major milestone in 2025, processing more than one million transactions a month on average for the first time since its launch a decade ago.
The volume of transactions demonstrates stronger economic activity and the growing adoption of digital payment channels.
Bangladesh Bank data show that the country's premier platform for settling large-value and time-critical payments processed 12.38 million transactions worth Tk 64.98 trillion during the year.
This translates into an average of 1.03 million transactions and Tk 5.42 trillion in settlements each month.
Transaction volume rose by 16.0 per cent from 10.67 million in 2024, while the total value of transactions increased by 14.4 per cent year-on-year.
Introduced by Bangladesh Bank to facilitate the instant settlement of high-value payments, RTGS is widely regarded as a barometer of economic activity because it captures the movement of large sums of money among banks, businesses, financial institutions and government entities.
The system is designed to settle local-currency transactions of Tk 100,000 and above, as well as domestic foreign-currency transactions. No minimum threshold applies to government payments or domestic foreign-currency transactions.
December recorded the highest transaction volume, with 1.12 million transactions processed during the month, followed by September with 1.09 million and November with 1.08 million. June registered the lowest volume at 0.92 million transactions.
In value terms, September emerged as the busiest month, with settlements reaching Tk 6.31 trillion. October followed with Tk 5.86 trillion, while February recorded the lowest monthly value at Tk 4.64 trillion.
Bankers and payment experts said the strong performance of RTGS reflected the continued digitisation of financial services and a growing preference among businesses and institutions
for secure, real-time settlement mechanisms.
Syed Mahbubur Rahman said the country's payment landscape had undergone a significant transformation, making transactions faster and more efficient than ever before.
"Payments originating from even the most remote areas, for example Kuakakata, can now be settled within a day, whereas similar transactions often took two to three days in the past," he told the FE.
Mr Rahman said traditional payment instruments such as pay orders and demand drafts were gradually becoming obsolete as RTGS and other digital payment platforms gained wider acceptance.
The average RTGS transaction size remains substantially higher than that of other digital payment channels, underscoring its importance for liquidity management, interbank transfers, government settlements, capital market transactions and large corporate payments.
The trend also points to broader adoption of RTGS among businesses seeking faster settlement and improved cash-flow management.
Industry stakeholders believe the platform will play an even greater role in the years ahead as businesses continue to move away from paper-based instruments and manual settlement processes.
Economists said RTGS activity often mirrors broader economic trends because higher settlement values generally indicate increased business transactions, stronger trade flows and greater financial market activity.
M. Masrur Reaz said RTGS data provide valuable insights into economic momentum because the platform captures some of the largest and most time-sensitive financial transactions in the economy.
He said sustained growth in RTGS activity is generally viewed as a positive indicator of expanding commercial activity and improving financial intermediation.
With transaction volumes and values continuing to grow at double-digit rates, RTGS is increasingly serving not only as the backbone of the country's digital payment infrastructure but also as a reliable gauge of economic activity in an increasingly digitised economy, he added.
jasimharoon@yahoo.com
