RTGS IMPLEMENTATION

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RTGS IMPLEMENTATION Handling of Composite NETs
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The Basic Changes

• 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-BSC Karachi 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 be reported
  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 Returns
• Sameday Clearing Returns
• Intercity Clearing Returns
• Other operations in the local current accounts of
  banks with SBP will remain unchanged.

3
Changes at branch Level
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.
4
Main Branch /Inter-branch Function
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 various cities for
control and reconciliation purposes.
5
SBP Centres
SBP centers will NOT post local NET entries into
the Banks current account for settlement. NIFT
will continue to provide all existing reports to
SBP centers for control and help in
reconciliation The individual position of each
SBP centre will be depicted separately in the
consolidated net sent to RTGS
6
Support from NIFT
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.
7
Impact on Intercity Clearing
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
secure web 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


MAIN INWARD SAMEDAY INWARD INTERCITY
INWARD SAMEDAY RETURNS INTERCITY RETURNS
MAIN RETURNS

SIX CONSOLIDATED NETS SUBMITTED BY NIFT AT KARACHI

RTGS

• 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

jamil_at_nift.com.pk
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USER NEEDS
CLEARING INFO, REGIONAL CONTROL
RECONCILATION
ELECTRONIC DELIVERY OF NETS
CONSOLIDATION
CLEARING INFO, REGIONAL CONTROL
RECONCILATION
BANKS POSITION REGIONAL DATA
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BASIC REQUIREMENTS

• COUNTRYWIDE CONNECTIVITY
• PROMPT DELIVERY
• ACCESS TO IMAGES
• ACCESS TO PAST DATA
• LOW COST / EASILY ADAPTABLE SOLUTION

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THE SOLUTION
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THE SOLUTION

• All clearing based reports provided on a tiered
  basis
• Individual Branch - Transfer Scrolls
• Main Branches in cities - Sub-Book for its
  branches in given city
• Main Clearing Deptt. - Sub-Book for its
  branches in 15 cities
• Treasury SCOREBOARD, Sub-Book for its branches
  in every city
• SBP BRANCHES Sub-Book for its branches in that
  city
• 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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THE SOLUTION

• 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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