Next Generation Treasury Application (NGTA)

In a bid to improve its functioning, the RBI has decided to move to the Next Generation Treasury Application (NGTA) for managing the country’s foreign exchange and gold reserves.

What is NGTA?

  • The NGTA, according to the RBI, would be a web-based application providing scalability, manoeuvrability and flexibility to introduce new products and securities, besides supporting multi-currency transactions and settlements.
  • It would be supporting various transactions in asset classes like Fixed Income (FI), Forex (FX), Money Market (MM) and Gold.
  • It would be used for managing the foreign exchange reserves in a more efficient way, mitigate risk, achieve operational efficiencies, dealing in various asset classes and reporting.

Objectives of NGTA

The objectives of the proposed system include:

  • dealing in various asset classes (like Fixed Income Securities, Forex, Money Market, Gold);
  • portfolio management; workflow management; reserve management;
  • integration with various third-party and in-house systems; and dashboards, reports, widgets.

Features of NGTA

  • The NGTA shall automatically fetch all the relevant details of a security/contract from a trading platform.
  • It shall support all internationally accepted conventions pertaining today count, interest computation, holiday logic, shut period-dividend, ex-dividend, cash flows, and odd coupon.
  • With respect to transactions in gold, the NGTA shall support purchase, sale, deposit (including rollover and premature withdrawal).
  • On maturity of a gold deposit, there can be exact, under or over delivery.