DUSHANBE, March 2, 2016, Asia-Plus – The National Bank of Tajikistan (NBT) plans to replace the real-time gross settlement system (RTGS) by the automated transfer system (ATS) and the central securities depository (CSD), according to the NBT press center.
Tajik central bank invites all interested sides for cooperation in replacing its payment system.
The NBT has reportedly received a US$10 million grant for development of the private sector competitiveness project.
A portion of the grant will be used for payment of services of international consultant, according to the NBT press center.
International consultant will assist Tajik central bank in preparing tender documents for ATS and CSD, assessment of tender documents, organizing negotiations with suppliers and producers of software, and preparing the launch of the system.
Real-time gross settlement systems (RTGS) are specialist funds transfer systems where transfer of money or securities takes place from one bank to another on a “real time” and on “gross” basis. Settlement in “real time” means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. “Gross settlement” means the transaction is settled on one to one basis without bundling or netting with any other transaction. Once processed, payments are final and irrevocable. RTGS systems are typically used for high-value transactions that require immediate clearing. In some countries the RTGS systems may be the only way to get same day cleared funds and so may be used when payments need to be settled urgently. However, most regular payments would not use a RTGS system, but instead would use a national payment system or network that allows participants to batch and net payments.
The automated transfer system (ATS) is specifically designed to meet and exceed the standard required by today’s central banks for RTGS and ACH processing. The ATS solution handles very high volumes of both high-value payments and low-value payments, such as credit transfers, direct debits and cheques, and combines efficiency and reliability of service with sound position maintenance and intraday liquidity management facilities. Besides the real-time gross settlement of high-value payments, the ATS is also an electronic clearing system that enables files of low-value payment instructions, including truncated cheques together with their scanned images, to be exchanged among financial institutions. It calculates multilateral net positions and settles them within the settlement module in either a continuous or deferred settlement mode.
A central securities depository (CSD) is a specialist financial organization holding securities such as shares either in certificated or uncertificated (dematerialized) form so that ownership can be easily transferred through a book entry rather than the transfer of physical certificates. This allows brokers and financial companies to hold their securities at one location where they can be available for clearing and settlement. This is usually done electronically making it much faster and easier than was traditionally the case where physical certificates had to be exchanged after a trade had been completed. A CSD can be national or international in nature, and may be for a specific type of security, such as government bonds.
