Montran Corporation is the successful bidder in the tender for the establishment of a Real Time Gross Settlement (RTGS) System in Israel. Team Computers and Systems Ltd. is the Israeli subcontractor. The new system is expected to start operating in the f

29.11.2005

Montran Corporation is the successful bidder in the tender for the establishment of a Real Time Gross Settlement (RTGS) System in Israel. Team Computers and Systems Ltd. is the Israeli subcontractor. The new system is expected to start operating in the first quarter of 2007.

The US corporation Montran is the successful bidder in the tender published by the Bank of Israel on 4 April 2005 for the establishment of a Real Time Gross Settlement (RTGS) system in Israel. The tender incorporates software, hardware, and assimilation and maintenance of the system. The new system is expected to be operational in the first quarter of 2007.

Montran's main activity is the development of RTGS systems and installing them in central banks throughout the world. Montran has made an agreement with an Israeli company, Team Computers and Systems Ltd., who will act as subcontractor for the supply and maintenance of the infrastructures for the RTGS system.

The Bank of Israel is acting in cooperation with the banking system to implement an overall reform of Israel's payment and settlement systems, the major aspect of which will be the establishment of an RTGS clearing house. This clearing house will ensure the rapid and reliable performance of payments, and will make it possible for large payments to be made between individuals and companies during the day securely, immediately, and finally, so that the transaction cannot be cancelled thereafter.

In the context of the general reform of the payment and settlement systems in Israel, the following changes have taken place: the banking business day has been extended to the afternoon (till 18:30), and the process of clearing checks, including imaging, throughout the banking system has been improved. For the future, check truncation is also planned. These changes will avoid the need for checks to be transferred physically, and will enhance the clearing system such that even though the business day has been lengthened, actual clearance will take place on the day of payment.

Development of the RTGS system and the implementation of the planned changes in the overall payment and settlement system will bring Israel's system into line with the generally accepted current international standards. This will enable the public in Israel and those abroad to carry out payments securely and according to the well-known rules used world wide.