The Shanghai Branch of Indian state-owned lender State Bank of India (SBI) has connected to China’s National Advance Payment System (CNAPS), reported PTI.
Introduced in 2008 by the central bank of China, CNAPS enables real-time settlement services for payments cleared in mainland China and in clearing banks in offshore yuan centres.
SBI is said to be the first Indian lender to implement CNAPS.
The bank was cleared by the PBOC in December 2016 to deploy CNAPS.
According to the report, the implementation of the system follows successful hardware and software installation and testing.
The CNAPS connection will enable SBI Shanghai to support the transfer of local funds in China in real time. The funds will be routed via PBOC.
As a result, the requirement of maintaining several bank accounts for fund transfer is removed.
SBI can also utilise CNAPS for cross-border RMB payments. Until now, this has been enabled through local correspondent banks.
Lately, SBI was in the news for plans to divest part of its stake in its credit card joint venture.
The bank reportedly plans to raise nearly $724m-$868m through the stake sale.
SBI recently also announced plans to strengthen its presence in Singapore by focusing on small and medium enterprises.