Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (1) of 2021

Concerning the Amendment of Instructions No. (1) of 2021 Regarding Electronic Cheque Clearing

Pursuant to the provisions of Legislative Decree No. (17) of 2012 Concerning National Payment Settlement, particularly Article (5) thereof, and extending to the provisions of Legislative Decree No. (15) of 2017 Concerning Electronic Transactions, particularly Article (31) thereof, and based on what was approved by the Board of Directors of the Palestine Monetary Authority in its meeting No. (235) dated 03/06/2021, and after reviewing Instructions No. (1) of 2021 Concerning Electronic Cheque Clearing, and based on the powers delegated to us, and in pursuit of the public interest, we have issued the following Instructions:

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Article (1)

Definitions

The words and phrases contained in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

Original Instructions: Instructions No. (1) of 2021 Concerning Electronic Cheque Clearing.

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Article (2)

Objective and Scope of Application

1. The provisions of these Instructions aim to reorganize the collection period for cheques submitted for electronic clearing.
2. The provisions of these Instructions apply to all members of the clearing system.

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Article (3)

Clearing System Working Hours

1. The provisions of Article (9), paragraph (2) of the Original Instructions are replaced with the following text:
   "Cheques shall be cleared within a maximum period of one working day (T+1), according to the working hours of the clearing system and the electronic clearing session."
2. Paragraph (6) of Article (9) of the Original Instructions is repealed.

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Article (4)

Operational Working Hours of the Clearing System

Annex No. (3) of the Original Instructions is replaced with Annex No. (1).

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Article (5)

Repeal

All provisions conflicting with the provisions of these Instructions are repealed.

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Article (6)

Implementation and Enforcement

All competent authorities shall, each within their respective purview, implement the provisions of these Instructions, which shall apply from 01/07/2021.

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Issued in Ramallah on 9/06/2021

Dr. Firas Malham
Governor
[Signature]

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Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251 Gaza - Palestine P.O. Box 4026 Fax: +970 8 2844487 | Tel: +970 8 2825713 www.pma.ps

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Annex No. (1) Operational Working Hours of the Clearing System

1. Classification of Working Days in the Clearing System According to Cheque Clearing Cycle:

T+1	T+0	T-1
Next Working Day	Current Working Day	Previous Working Day

2. Daily Operational Working Hours of the Clearing System:

Time	Window – Event	Operations
08:15	Opening of the Clearing System for the Current Working Day (T+0) <br> Start of Day (SOD)	1. Adjust the posting date to the new current working day (T+0) and begin sending and receiving cheque files for this date. <br> 2. Process cheque files (submitted for clearing + returned) uploaded by banks after 14:05 on the previous working day (T-1) and send processing result files (QVF Files) and pending incoming cheque files (QNF Files), including the settlement date automatically calculated in the clearing system.
10:30	End of Cheque Return Operations <br> { For Cheques Uploaded Before One Working Day (T-1) }	The cheque clearing cycle submitted to the clearing system before one working day (T-1) ends, and the issuing bank cannot return the cheque after this time.
10:30–10:45	Holding the Clearing and Cash Settlement Session <br> Accepted Only for Accepted Cheques <br> { And Uploaded Before One Working Day (T-1) }	1. Automatically execute the electronic clearing and cash settlement session for accepted cheques. <br> 2. Calculate the net central bank position for the clearing of one working day (T-1) and submission for clearing (Accepted) only. <br> 3. Cash settlement of the net central bank position results on the "Baraq" system. <br> 4. Send financial settlement result files (RSF Files). <br> 5. Extract reports regarding the net central bank position and conduct internal claims.
13:45	End of Cheque Submission for Clearing Operations for the Current Working Day (T+0)	PMA Instructions: The cheque submission for clearing process ends on the posting date of the current day (T+0) to instruct all banks to stop submitting cheques for clearing on the posting date of the current day (T+0).
14:00	Clearing System Stops Accepting Cheques Submitted for Clearing on Posting Date T+1 with Settlement on Current Working Day T+0 <br> { System Cheques Processing Cut-off }	System Operations: <br> 1. Receipt and processing of cheques with posting date T+0 at 14:00, which are to be settled on posting date (T+1), will be halted. <br> 2. Any cheques submitted for clearing between 14:00 and 14:05 will be processed directly and processing result files (QVF Files) and incoming cheque files (QNF Files) will be sent with a settlement date of (T+2).
14:30	Closing of the Clearing System for the Current Working Day (T+0) <br> (EOD) End of Day	1. Cheques uploaded after 14:05 will remain in (Received) status, and no processing will be performed on them until the clearing system opens on the next working day (T+1). <br> 2. All system operations conclude and the posting date for the current working day (T+0) is closed.