| dc.description.abstract | The banking industry is in the midst of Information Technology (IT) revolution and in stiff competition with mobile money transfer. RTGS system is yet another IT solution to the major challenges that have been constraining the industry in terms of security and timelines of making and receiving payments. This study sought to establish the extent of adoption of RTGS by commercial banks in Kenya and to determine the benefits of adoption of RTGS by commercial banks in Kenya. The researcher used descriptive survey design for the study. The target population of this study consisted 44 commercial banks in Kenya which are licensed to participate in RTGS funds transfer. Primary data was used in this study. The data collection instrument is a questionnaire designed and developed by the researcher based on the research questions. On the extent to which RTGS improved funds transfer in Kenya, the respondents indicated that RTGS improved funds transfer in Kenya to a very large extent. This demonstrated that commercial banks had adopted RTGS fund transfers systems where adopting RTGS in money transfers because there banks do not need to physically exchange of money and that the RTGS system was suited for low-volume, high-value transactions carried out by banks, lowers settlement risk, besides giving an accurate picture of the bank‟s account at any point of time. The study revealed that bank has adopted RTGS in funds transfer with regard to procurement of services, procurement of goods, subscription to the government bonds, foreign remittances for Kenyans in the Diaspora and with regard to purchase of property and assets mainly from the government to a very large extent. The study established that adoption of the RTGS by the banking industry was important in the achievement in fighting for the liberalization and technology revolution. The study concluded that commercial banks were using RTGS to a great extent as RTGS enhance funds transfer fast and improve fund transfer efficiency. The study concluded that commercial banks had adopted RTGS fund transfers systems where adopting RTGS in money transfers because there banks do not need to physically exchange of money and that the RTGS system was suited for low-volume, high-value transactions carried out by banks, lowers settlement risk, besides giving an accurate picture of the bank‟s account at any point of time. The study concluded that bank used RTGS to a very great extent in funds transfer with regard to procurement of services, procurement of goods, subscription to the government bonds, foreign remittances for Kenyans in the Diaspora and with regard to purchase of property and assets mainly from the government. From the findings, the study concluded that adoption of the RTGS by the banking industry was important in the achievement in fighting for the liberalization and technology revolution, reduces the dominance of cash as a financial instrument in the payment system, reduce risk arising from payment exposure, enhance safety and efficiency of exchange in value between transacting parties to and provide an on-line settlement system that would enable both banks and individuals to transfer funds electronically on a real time basis and generally improve country economic development. The study recommend that commercial should be enhance use of RTGS enhance funds transfer with regard to institutions procurement of services, procurement of goods, subscription to the government bonds, foreign remittances for Kenyans in the Diaspora and with regard to purchase of property and assets. | en |
