Circulars/Notifications - Payment System Department  
 PSD Circular Letter No. 01 of 2020
January 31, 2020 

The Presidents/CEOs
Clearing House(s) and its Members

Dear Sir / Madam,

Guidelines for Clearing Operations


          Please refer to Clause 7.3 (i) of PSD Circular No. 03 dated September 21, 2017 regarding the captioned subject, wherein it has been advised that in cities / towns where Clearing House services are not available, Banks shall settle their clearing obligations through their respective Treasuries/Head offices using MT 202 in Pakistan Real-time Interbank Settlement Mechanism (PRISM).

2. In order to facilitate the stakeholders by reducing Turnaround Time (TAT) and to ensure the secured settlement of remote area clearing obligations between banks, it has been decided that banks may use MT 102 message in PRISM system free of charges and with no limit on minimum amount. While preparing the MT 102 message for settling above referred clearing obligations, the banks shall ensure the following:

  1. Banks are advised to use a special transaction type code (039) in relevant field of MT 102 message in order to differentiate transactions relating to clearing obligations of Remote Areas from the other transactions. This transaction code has been assigned in PRISM only for Remote Areas transactions;
  2. Beneficiary’s IBAN / Account Number along with instrument number shall be used in Field 70 of each payment instruction;
  3. MT 199 will be used in case a returned instrument is not received by the collecting / presenting bank; and
  4. Both presenting / collecting and paying / drawee bank shall ensure to specify beneficiary’s IBAN / Account Number in the field ‘59’of the message.

3. All banks are required to devise a mechanism and establish internal procedures to be followed by their Branches and Treasury for smooth and timely settlement of above referred settlement obligations.

4. All other instructions given in the afore-mentioned circular will remain the same.


Yours sincerely,


(Syed Sohail Javaad)

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