What is E-Kuber?
By BYJU'S Exam Prep
Updated on: November 14th, 2023
E-Kuber is a ‘core banking solution’ platform of the Reserve Bank of India. It is a payment system launched by the Reserve Bank of India with the goal of replacing traditional methods of government payments and others. Banks can use E-Kuber to connect their single current accounts across the country.
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E-Kuber Payment System
Government securities, or G-secs, are also issued through RBI auctions on E-Kuber. G-secs are the instruments used by the government to borrow money. E-Kuber is a payment solution that seeks to provide an integrated system via which all payments are distributed to recipients without delay.
- It follows an entirely automated procedure. It is capable of processing 50,000 transactions at once.
- However, financial transactions involving government accounts would no longer require the use of a bank as an intermediary and will be handled directly by the Reserve Bank of India.
- It aspires to replace the government’s existing payment system, which includes employee salaries as well as pensions for retirees.
All the Commercial banks, Primary Dealers, Scheduled Urban Co-operative Banks, Insurance companies, and Provident Funds, who maintain funds accounts (current account) and securities accounts (Subsidiary General Ledger (SGL) account) with the Reserve Bank of India (RBI), are members of this electronic platform.
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