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    Payments NationalBankofSerbia

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    arijit00
    The document discusses the clearing of international payments in Serbia. It provides details on the participants in clearing, including banks and central banks. It also describes the process of clearing, including the exchange of payment messages, calculation of net positions, and settlement between central banks. The daily schedule is outlined, showing the key steps from receiving limits in the morning to issuing account statements at the end of the day. [/SUMMARY]

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    Payments NationalBankofSerbia

    Uploaded by

    arijit00
    105 views20 pages
    The document discusses the clearing of international payments in Serbia. It provides details on the participants in clearing, including banks and central banks. It also describes the process of clearing, including the exchange of payment messages, calculation of net positions, and settlement between central banks. The daily schedule is outlined, showing the key steps from receiving limits in the morning to issuing account statements at the end of the day. [/SUMMARY]

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    The document discusses the clearing of international payments in Serbia. It provides details on the participants in clearing, including banks and central banks. It also describes the process of clearing, including the exchange of payment messages, calculation of net positions, and settlement between central banks. The daily schedule is outlined, showing the key steps from receiving limits in the morning to issuing account statements at the end of the day. [/SUMMARY]

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    © All Rights Reserved
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    105 views20 pages

    Payments NationalBankofSerbia

    Uploaded by

    arijit00
    The document discusses the clearing of international payments in Serbia. It provides details on the participants in clearing, including banks and central banks. It also describes the process of clearing, including the exchange of payment messages, calculation of net positions, and settlement between central banks. The daily schedule is outlined, showing the key steps from receiving limits in the morning to issuing account statements at the end of the day. [/SUMMARY]

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    CLEARING OF INTERNATIONAL

    PAYMENTS

    Belgrade, March 2007

    Clearing of international payments

    Clearing of international payments is performed for banks headquartered in the


    Republic of Serbia and for banks headquartered in the territory of the country with whose
    central bank the National Bank of Serbia has entered into agreement on net settlement of
    international payments.
    Clearing of international payments is performed as multilateral net settlement for the
    account of natural persons and legal entities that are clients of banks whose central banks
    are signatories to the agreement on clearing of international payments.

    Participants in the clearing of international payments are:


    - central banks signatories to agreement, and
    - banks that have signed an agreement on participating in the settlement of international
    payments with their central bank, signatory to the agreement.

    Participants in clearing are responsible for authenticity, encoding and content of


    messages, for timely sending of messages in the clearing system, and for safety and
    protection of communication with the clearing system.

    Reasons

    Reduced costs
    Foreign exchange payments in the country performed in
    the same way (on condition they are in compliance with
    regulations)
    Efficiency
    Costs are paid in the country
    Preparation for European integrations (SEPA)
    Support to free trade (CEFTA)
    Possibility to cooperate with other countries of the region

    Criteria for access to the clearing system


    In order to participate in the clearing system, banks need to submit an
    application for participation, certified and signed by authorized representatives
    of the bank, and to:

    register their bank identification code BIC code;


    meet technical preconditions to access;
    register persons authorized for contact;
    enter into agreement on participation in the clearing system with their central
    bank.

    Communication: private network, file adapter


    Alternative: SWIFT FileAct

    Settlement accounts, limit and net position

    Clearing of international payments is performed as net settlement through the


    settlement account of a bank opened and maintained with the central bank.
    Net position of a bank at a given time means the difference between account
    credits and debits of such bank from the start of the clearing cycle through to that
    particular time.
    Clearing operator is in charge of clearing of international payments.
    The central bank notifies the clearing operator of net debit limits for its banks,
    for whose performance it stands guarantor in accordance with the agreement.
    Net debit position of a bank can at no time exceed the approved limit.
    A participant may request from its central bank to raise or lower the limit,
    which will be approved if conditions for such move have been met.

    Receipt of orders and clearing system


    procedures

    Communication in the system is done by means of MT103 or MT102 messages


    (SWIFT standard).
    If, after processing, a message is found to meet the requirements for participation
    in clearing, such message will be recorded in the banks settlement account only
    insofar as it conforms to the limit.
    If the net debit position exceeds the approved limit, the sent message will be
    delegated to the queue (priority from 11 to 50).
    Incorrect messages shall be rejected.
    At the end of the cycle, multilateral net positions will be calculated and central
    banks notified of their aggregate net balances and net balances of their banks.
    Payments among central banks settlement will be effected through an account
    with a prime international bank.
    Central banks debit and credit banks accounts for the amount of their clearing net
    positions.
    Each bank will get a statement from its settlement account, after which
    settlement will be deemed final.

    SWIFT standard messages used in the clearing


    system
    Basic SWIFT standard messages used in the clearing system are:

    MT103 single customer credit transfer


    MT102 multiple customer credit transfer
    MT202 general financial institution transfer
    MT900 confirmation of debit
    MT910 confirmation of credit
    MT920 request message
    MT941 balance report
    MT942 interim transaction report
    MT950 statement message
    MT940 customer statement message (with details)
    MT196 answers to MT103 and MT102 queries
    MT195 status query message
    MT192 cancellation request

    Message MT103 - example


    :20:VBUBCS22XX230
    :23B:CRED
    :23E:SDVA
    :26T:REF
    :32A:070116EUR1400,00
    :50K:/RS35908000000003550178
    Vojvodjanska banka
    :53A:/D/RS35908000000003550178
    VBUBRS22XXX
    :57A:/C/BA390000000001340153
    IKBZBA2XXXX
    :59:/BA390000000001340153
    Investiciono-komercijalna banka dd
    Zenica
    :70:SIF-212
    PBZPBO:71A:SHA
    :72:/BNF/Trade in services of public enter
    //prises

    TRN of SWIFT
    Always CRED
    Always SDVA
    Currency date, currency code (EUR) and amount, date
    K /IBAN of the ordering party, its name and address
    IBAN and BIC of the paying bank in the following
    format /D/IBAN of the bank or /IBAN of the bank BIC
    IBAN and BIC of the bank whose account is credited
    IBAN is mandatory, slash is a part of syntax for account
    designation
    Payment code, debit reference number and credit reference
    number are transferred.
    Always SHA
    Payment purpose

    Message MT102 example


    :20:5161031630131682
    :23:CREDIT
    :26T:REF
    :71A:SHA
    In the repetitive sequence B, for each
    individual payment
    :21:5162031630131265
    :32B:EUR8274,00
    :50K:/RS35305001000000211460
    STR SRECCKO TOMICC MAJA
    :59:/BA390000000001340153
    Investiciono-komercijalna banka dd
    Zenica
    :70:SIF-221
    PBZPBO- 9683
    :77B:TRADE IN GOODS AND SERVICES
    Sequence C
    :32A:030612EUR8274,00
    :53A:/D/RS35908000000003050143
    PBPASR22
    :54A:/BA390000000001340153
    IKBZBA2XXXX

    TRN of the SWIFT


    Always CREDIT
    Always REF
    Always SHA
    Transaction reference
    Currency code (EUR) and amount
    IBAN of the ordering party, name and address of the
    ordering party
    /IBAN of the beneficiary, name and address of the
    beneficiary
    Payment code, debit reference number and credit reference
    number are transferred.
    Payment purpose, 35+35+35
    Currency date, currency code (EUR) and amount (sum of all
    transactions)

    /D/IBAN of the paying bank or /IBAN


    IBAN and BIC of the bank whose settlement account is
    credited.

    Daily operating schedule of the clearing


    system
    Start of day
    Receipt of limits (and exchange of
    payment messages)
    Exchange of payment messages
    Pre-clearing
    Clearing
    Settlement of net positions of CB
    Cancellation of unprocessed payment messages
    Issuance of account statements
    Storing
    End of day

    9:00
    9:05 9:30
    9:30 11:30
    11:30 12:00
    12:00 12:30
    12:30 15:55
    15:55 16:00
    16:00 16:15
    16:15 17:00
    17:00

    Start of day and receipt of limits


    9:05 9:30
    clearing operator
    BANK

    BANK
    AIKBRS22

    BANK
    KOBBRSBG

    National Bank of
    Serbia

    Central Bank of
    BiH

    RZBABA2S

    BANK
    VBSABA22

    Based on central banks notifications, the clearing operator will set net debit
    limits for each bank.

    Exchange of payment messages


    9:05 11:30
    BANK
    AIKBRS22

    196,MT900,MT910
    103, 102

    BANK
    KOBBRSBG

    103, 102

    103, 102

    196,MT900,MT910

    clearing operator

    BANK
    RZBABA2S

    196,MT900,MT910
    103, 102

    196,MT900,MT910

    BANK
    VBSABA22

    Communication between participants and the clearing system is effected via


    messages to be submitted either individually (MT103) or for multiple
    payments (MT102).
    A message that cannot be processed for any reason shall be rejected, with an
    adequate message returned to the sender MT196.
    If a sent message is found to meet the requirements for participating in the
    clearing system, such message will be recorded on the banks settlement
    account only if the net debit position at that time does not exceed the net debit
    limit.

    Pre-clearing
    11:30 12:00
    clearing operator

    National Bank of
    Serbia

    Central Bank
    of BiH

    After the time for receipt of messages, as set out in the daily operating
    schedule, the clearing operator will notify central banks of aggregate net
    balances in respect of clearing and of net balances of their banks.
    Central banks will then agree on their net positions.

    Settlement of net positions of CB


    12:00 15:55
    MT202

    Deutsche bank
    MT900, MT910

    MT202

    MT900, MT910

    clearing operator
    National Bank
    of Serbia

    Central Bank
    of BiH

    Settlement of aggregate net positions between central banks is done


    through an account with a prime international bank in conformity with
    contractual provisions (Deutsche Bank).
    Central banks, in accordance with contractual provisions, notify the clearing
    system of their approval to settle net positions.

    Crediting and debiting of bank accounts


    In line with their authorizations, central banks credit and debit the
    accounts of banks for the amount of their clearing positions.

    National Bank of Serbia


    Debit

    Credit

    Bank A
    Bank B
    Bank C

    Bank D
    Bank E
    Bank F

    Cancellation of unprocessed payment messages


    15:55-16:00

    The system automatically sends MT196 for messages that


    were not accepted for clearing (returns unprocessed
    messages)

    Issuance of account statements


    16:00 16:15

    clearing operator

    MT940

    MT940

    BANK

    BANK

    AIKBCS22

    RZBABA2S
    MT940
    MT950

    BANK

    NBS

    MT950

    MT940

    CB of
    BiH

    KOBBCSBG

    BANK
    VBSABA22

    After settlement, the clearing system will send to each of the banks a
    statement from its settlement account for clearing, after which settlement will
    be deemed final.
    Message 950 is statement message and 940 is customer
    statement message (with details).

    MT940 customer statement message


    20

    Reference

    Yes

    TRN

    25

    Account number

    Yes

    Number of the account to which the message refers (IBAN)

    28C

    Statement number/Message
    sequence

    Yes

    Statement number is the ordinal number of the account statement since the
    beginning of the year. If the statement is sent in more than one message,
    these messages will be marked in a sequence from 1 onwards.

    60F

    Initial balance in the form (D/C),


    date, currency code, amount

    Yes

    Example
    C070222EUR100995,01

    61

    Statement line

    86

    Information for account holder, for


    103
    50K, 59 (IBAN only) and 4 lines for
    70,
    for 202 only 53A and 58A (IBAN
    only)

    Up to 6*35 characters

    62F

    End balance in the form (D/C),


    date, currency code, amount

    Yes

    Example
    C070222EUR200996,

    The field 61 repeats for each change in the statement.


    The format of the field 61 is as follows:
    currency date (YYMMDD),
    date of entry (MMDD),
    credit/debit (C,D,EC,ED,RC or RD, E expected, R reversed),
    final letter of the currency code,
    amount (up to 12 integer places, up to 2 decimal places)
    code for identification of transaction type, 3 characters,
    reference for account holder, up to 16 characters
    //,
    reference of the institution servicing the account, up to 16 characters,
    further details, up to 34 characters

    Legal regulations (Serbia)

    Article 32, paragraph 4 of the Law on Foreign Exchange Operations (RS Official
    Gazette, No. 62/2006);
    Decision on Clearing of International Payments;
    Decision on the Conditions and Manner of Performing International Payment
    Transactions (supplement);
    Guidelines for Implementation of the Decision on the Conditions and Manner of
    Performing International Payment Transactions (supplement);
    Operating Rules for Clearing of International Payments (special Rules for clearing
    of international payments for our banks);
    Agreement on Participation in the Clearing of International Payments;
    Account debit order;
    Authorization for the person in charge of security and protection of communication
    with the system of clearing of international payments protection administrator;
    Registration of persons authorized for contact with the National Bank of Serbia with
    regard to settlement transactions in the clearing of international payments;

    National Bank of Serbia


    Payment System Department

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