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No. RTGS/ 248 /65-2007. |
July 24, 2007 |
The
Presidents/Chief Executives,
All Banks,
Dear
Sir,
IMPLEMENTATION
OF COUNTRY WIDE NETTING OF CLEARING RESULTS
As
you are aware that SBP is presently in the process of implementing
a Real Time Gross Settlement (RTGS) System in order to automate
inter bank funds transfer and securities settlement on real
time basis. In this connection Country wide netting of clearing
results is one of the prerequisites for smooth functioning
of the proposed RTGS System. In this regard a detailed scheme
has been prepared and finalized by SBP in consultation with
NIFT for its implementation.
As a first part of the above said implementation plan, a
joint team of SBP and NIFT visited all the 16 field offices
of SBP BSC during June-July, 2007 and conducted training
sessions which were attended by the concerned officials
of Banks from their respective Regional Offices.
Under the new system instead of providing individual nets
at each SBP Centre, NIFT will collect nets from all automated
centers and provide a consolidated country wide net position
to SBP-BSC Karachi for settlement (sample appended below).
Thus the countrywide net position will be debited / credited
to banks’ current accounts in Karachi. It may be relevant
to mention that this will in any case not affect other operations
in the local current accounts of banks maintained at respective
SBP-BSC office.
SAMPLE
CHART |
CITY |
DELIVERED
AMOUNT |
RECEIVED
AMOUNT |
NET
AMOUNT |
Karachi |
500,000 |
300,000 |
200,000 |
Lahore |
100,000 |
200,000 |
-100,000 |
Islamabad |
100,000 |
60,000 |
40,000 |
Peshawar |
250,000 |
350,000 |
-100,000 |
Sialkot |
140,000 |
60,000 |
80,000 |
Faisalabad |
70,000 |
90,000 |
-20,000 |
Quetta |
180,000 |
220,000 |
-40,000 |
Countrywide
Total |
1,340,000 |
1,280,000 |
60,000
Net
Amount Credited in bank’s account at Karachi |
PROCESS
SUMMARY
1. There will be no change in the clearing procedure, reporting
and functions. The change will have no effect at branch
level. Only the Inter-city cycle will become a two-day product
from existing three day cycle.
2.
NIFT will furnish six composite nets for all centers at Karachi
on a product-wise basis to SBP BSC at Karachi.
a)
Normal Clearing
b) Same Day Clearing
c) Intercity Clearing
d) Return Normal Clearing
e) Return Same Day Clearing
f) Return Intercity Clearing
3. Local SBP offices and main branches of Commercial Banks
in different cities will get the same set of reports as
is being done currently for control and reconciliation purposes.
4. The reporting will, as usual be provided to banks via
hard copies by NIFT however if required by banks NIFT could
also provide advance information of bank’s position
to their concerned departments/Treasury etc. via web by
employing PKI Security so that they may be assisted in fund
management.
In
essence this transition will be transparent to the commercial
banks and there will be no change in procedure, reporting
and functions currently being followed at banks Branch level.
But there will be a change in the accounting procedure at
Main Branch level for the clearing related transactions
in all cities i.e. currently the main branches in each city
reconciles their clearing related transactions with SBP-BSC
office of the same city. As stated above the country wide
composite nets will be debited/credited to the bank’s
current account in the books of SBP-BSC Karachi, therefore,
the Main Branch at each city will reconcile their clearing
related transaction with their Main Branch Karachi.
As
per plan, the scheme will be implemented product wise i.e.
at first instance we implement country wide netting of Normal
Clearing–Inward and Normal Clearing–Return only
from August 15, 2007 for two weeks and after its successful
implementation, the other two products viz Same Day Clearing
and Intercity Clearing will be implemented afterwards.
As
the implementation of the said scheme is expected to start
tentatively w.e.f. 15-08-2007, you are therefore advised
to plan/streamline the flow of accounting transactions in
this respect and communicate the same to all Main Branches
and also inform us about your preparedness as soon
as possible but not later than August 10, 2007.
For
any query or detail please feel free to contact Shaikh Jamilul
Haque, General Manager, NIFT e-mail [email protected] /
phone 021-2629665. Although NIFT will primarily be responsible
for providing any support during the implementation, however
for any further elaboration/clarifications you may also
contact Mr. Muhammad Aslam via e-mail [email protected] / phone 021-2453401 or Mr. Shahid Rabbani via email [email protected] / phone 021-2453409.
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Yours
faithfully,
(Syed Sohail Javaad)
Project Manager
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