This applies to payments between banks, primary dealers, non-banking finance companies and payments in the money market, Government securities market and foreign exchange market, said the RBI note.

Earlier, the RBI's Working Group had issued the recommendations about migrating from paper-based systems to electronic systems and had recommended a phased approach of encouraging, monitoring and mandating.

According to the group's recommendations, moving such large payments from an unsecured paper-based system to a fully secure electronic credit push system would help to reduce credit and settlement risks, bring greater efficiency, increase customer convenience and reduce the transaction cost for the banks, which in turn can be passed on to customers