Centralized Netting- Presentation

8/2/2019 Centralized Netting- Presentation

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The new approach envisages a netting on a country wide basis.

The new system will require NIFT to collect nets from all

automated centers and provide a consolidated net to SBP-BSCKarachi for settlement. Thus the countrywide net position will be

debited / credited to banks current accounts in Karachi.

While the net figure in the composite net for each bank will be arrived at by

making a logical sum of debit and credit positions of that bank in fifteen

cities, the position for each of the SBP branches in these cities will bereported separately.

Each product and its return will be consolidated separately and hence there

will six net positions:

Main Clearing

Inward

Sameday Clearing Inward

Intercity Clearing Inward

Main Clearing ReturnsSameday Clearing Returns

Intercity Clearing Returns

Other operations in the local current accounts of banks with SBP willremain unchanged.


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The branch clearing system will remain unaffected.

Branches will receive the same set of reports

There will be no change in the existing services and procedures.

Bank branches will be able to access reports through an optional web

service; this will provide a number of advantages like reliability and

quicker availability of information, data and images branches can offer

prompt service to their clients with lesser turn around times.

There could be a change in the inter-branch accounting procedure.


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A new inter-branch methodology (for cities outside Karachi)would have to be evolved at each bank.

The out-city branches may either route their entries through the

local main branch (existing procedure) or all branches will route

entries directly to the main branch at Karachi.

If out-city branches are routing entries through the local main

branch, the local main branch will route the consolidated

position to the main branch at Karachi.

Single out-city branches will route their entries through to the

main branch at Karachi

NIFT will continue to provide main branch reports at variouscities for control and reconciliation purposes.


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SBP centers will NOT post local NET entries into the

Banks current account for settlement.

NIFT will continue to provide all existing reports to SBPcenters for control and help in reconciliation

The individual position of each SBP centre will be

depicted separately in the consolidated net sent to

RTGS


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NIFT will manage the consolidation process and furnish

composite nets to RTGS at Karachi.

Electronic reports depicting the consolidation process

will be provided to banks on the web.

NIFT will extend optional advice printing facilities to all

banks (four major banks are already utilizing this

facility).

Advance electronic information will be made available

to Treasury / Funds management departments through

the web.


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Currently the Intercity netting procedure is implemented over two

days.

This process will be streamlined to support systematic

preparation of consolidated net position for RTGS.

The debit (in the city of payment) will now coincide with the

credit contra entry in the collection city through secure

electronic intimation.

NIFT will intimate the fate to collecting branches through secureweb reports The return instruments will be provided next day.

The intercity clearing turnaround time will effectively be reduced

to 24 hours


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MANAGING CHANGE - RTGS IMPLEMENTATION

PKI SECURED TRANSMISSION

ADVANCE INFO TO TREASURY AND BRANCHES (WEB REPORTS)

INFO AND SUPPORT FOR RECONCILIATION.

ADVANCE ELECTRONIC DATA FOR INTERCITY

NO SECOND NET FOR RECEIPTS OUTSIDE TIME WINDOW

+

++

++

++

+

SIX

CONSOLIDATED

NETS SUBMITTED

BY NIFT AT

KARACHI

RTGS

MAIN INWARD

SAMEDAY INWARD

INTERCITY INWARD

SAMEDAY RETURNS

INTERCITY RETURNS

MAIN RETURNS


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RTGS SBP

CENTRES

BANKS

TREASURY

BANKS

REGIONS /

BRANCHES

CLEARING INFO,

REGIONAL

CONTROL

&

RECONCILATION

CLEARING INFO,

REGIONAL

CONTROL

&

RECONCILATION

BANKS

POSITION

&

REGIONAL

DATA

ELECTRONIC

DELIVERY

OF NETS

&

CONSOLIDATION


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COUNTRYWIDE CONNECTIVITY

PROMPT DELIVERY

ACCESS TO IMAGES

ACCESS TO PAST DATA

LOW COST / EASILY ADAPTABLE SOLUTION

RTGS SBPCENTRES

BANKSTREASURY

BANKSREGIONS /

BRANCHES


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All clearing based reports provided on a tiered basis:

1. Individual Branch - Transfer Scrolls

2. Main Branches in cities - Sub-Book for its branches in

given city

3. Main Clearing Deptt. - Sub-Book for its branches in 15cities

4. Treasury SCOREBOARD, Sub-Book for its branches

in every city

5. SBP BRANCHES Sub-Book for its branches in that city

6. RTGS CONSOLIDATED SCOREBOARD, all Sub-Books

ALL REPORTS ARE DIGITALLY SIGNED PDF DOCUMENTS,

THESE WILL BE RETAINED ON THE SYSTEM FOR A

PERIOD OF 3 MONTHS


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System hosted on verisign ssl based server User signs in with Class II Digital Certificates on USB

Tokens (Active Key) to access the site

Besides Electronic Reports The system offers other

auxiliary services

User operational rights imbedded in the system, each

digital certificate identifies users access according

THE FOLLOWING SLIDES ILLUSTRATE BASIC

FEATURES OF THE SYSTEM (USER RTGS)


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THANK YOU

Documents

Centralized Netting- Presentation