On 6 March 2018, the State Bank of Pakistan (SBP) issued the new Pakistan Real Time Interbank Settlement Mechanism (PRISM) Operating Rules (POR). These rules apply to all current and future PRISM participants and are effective immediately. “The State Bank of Pakistan (SBP), in consultation with all stakeholders, has issued the appropriate rules, which are aligned with international standards and provide instructions for PRISM or Real Time Gross Settlement Systems (RTGS) business operations,” the central bank said in a circular. These new rules contain detailed criteria regarding access to PRISM participation, processing and finality, efficiency and effectiveness, etc. “The rules apply to all current and future PRISM participants and are effective immediately. “In the event of a deficit, PRISM participants must organize funds on time,” the central bank added. `PRISM participants eligible for SBP`s reverse repurchase agreement facility may avail themselves of the intraday liquidity facility in accordance with the PRISM rules.` SBP`s statement also stated that financial institutions would participate directly in PRISM. The intraday liquidity facility against the guarantee of approved government securities transferred with SBP would be made available to eligible PRISM participants, as determined by SBP from time to time. They would have the right to transfer funds through PRISM to direct and indirect participants. During the quarter ended 30. September 2017, 0.4 million transactions totaling Rs 88.1 trillion were processed by PRISM.
Compared to the previous quarter, the value of these transactions increased by 3.2% and the volume of these transactions recorded a quarterly decrease of 2.9% compared to the previous quarter. Our event trackers and how-to guides will help you stay fully informed about a particular development affecting payment services regulation. Understand all the details of a complex chain of events to create a fully evaluated strategy, and use our expert research and practical content to better inform your decision-making. Currently, the NCCPL must ask PRISM member banks to settle long and short positions. If the NCCPL becomes a member of the system, it could process commercial transactions directly. KARACHI: The central bank on Monday allowed the National Clearing Company of Pakistan Limited (NCCPL) to settle stock exchange transactions directly, as it has made the clearing company a member of its interbank settlement system. “In order to improve the existing clearing process of the National Clearing Company of Pakistan Limited (NCCPL) and reduce the associated settlement risk, SBP has mandated NCCPL, as a special participant in the Pakistan Real-Time Interbank Settlement Mechanism (PRISM) system, to settle the net position of capital market transactions in PRISM”, the State Bank of Pakistan (SBP) said in a statement. “The clearing settlement by NCCPL will be operational from 22 January 2018.” Our in-house team of experts will bring you the latest information on the payments industry. By combining our unparalleled knowledge and deep understanding of the industry, we provide critical and timely information to help you understand what happened and what it means for your business. Comprehensive oversight of hundreds of regulators in multiple jurisdictions and languages. With personalized notifications and a feed on each event that shows changes, you won`t miss a new engagement or opportunity.
Once an event becomes law, you will continue to receive assistance in the ongoing review of licensing obligations so that you know what steps to take when obtaining or extending licenses. KARACHI: The central bank on Tuesday issued new guidelines outlining how financial institutions should participate in payment settlement and the settlement system known as the Pakistan Real-Time Interbank Settlement Mechanism (PRISM). Indirect participants would have a compensation account in PRISM, but no direct access or connection to PRISM. The operating rules of the Pakistan Real-Time Interbank Settlement Mechanism (PRISM) have been published and are available on the official RTGS website. The PRISM Operating Rules were promulgated under the powers of the Payment Systems and Electronic Funds Transfer Act 2007. For more information, visit the official SBP website. The PRISM system provides the mechanism to settle transactions in real time throughout the day, which significantly reduces the time as opposed to the settlement system, where transactions are settled at the end of the day. “All of these PRISM participants will have a direct connection and settlement account in PRISM and will be able to settle sovereign transactions via the PRISM interface.” SBP recommended that all member banks hold sufficient funds in their demand deposit accounts with SBP Banking Services Corporation (BSC) based on their current and future clearing requirements to mitigate settlement risk.