Instruction on the Procedure for Numbering Bank Settlement Accounts

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Date of creation: 2021-05-26

Registered with the Ministry of Justice of the Kyrgyz Republic on March 17, 2005. Registration No. 41-05

Approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 22, 2005 No. 3/5

INSTRUCTION on the Procedure for Numbering Bank Settlement Accounts (As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 8, 2017 No. 2017-P-14/23-11)

1. General Provisions

1.1. (Expired in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 8, 2017 No. 2017-P-14/23-11)

1.2. The purpose of the "Instruction on the Procedure for Numbering Bank Settlement Accounts" (hereinafter - Instruction) is to establish a unified structure of bank settlement accounts (bank settlement accounts of individuals and legal entities, including individual entrepreneurs, residents and non-residents of the Kyrgyz Republic (hereinafter - clients) in financial-credit organizations (hereinafter - banks), licensed by the National Bank of the Kyrgyz Republic (hereinafter - National Bank), as well as the structure of bank accounts of the National Bank.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 8, 2017 No. 2017-P-14/23-11)

1.3. This Instruction applies to the National Bank and banks licensed by the National Bank that are participants of the payment system of the Kyrgyz Republic.

2. Key Definitions

2.1. Bank settlement account (hereinafter - Account) - an account opened by a bank for its clients to conduct non-cash payments and settlements, and to accumulate non-cash funds on the account for further use and client servicing, as provided by the bank account agreement, legislation of the Kyrgyz Republic, and regulatory acts of the National Bank.

2.2. Account Number is an identifier of a bank settlement account and serves to identify the client in the non-cash payment system (delivery of payment to the final recipient).

2.3. Intra-bank account number is a numeric code identifying the client's Account within the bank.

3. Objectives of Using Account Numbering Standards

3.1. The Account Number in the payment system is intended to identify the client - payment recipient and serves for automated routing of payments from the sender to the final recipient through interbank payment systems.

3.2. The Account Number is a mandatory detail when processing payment documents and is used for conducting non-cash payments in accordance with the legislation of the Kyrgyz Republic and regulatory acts of the National Bank.

3.3. The standard structure of the Account Number is intended to verify the accuracy of the final recipient's Account Number at the moment of initiating a payment in the paying bank.

4. Structure of the Account Number

4.1. The Account Number has a fixed length and contains check digits ensuring account accuracy verification according to a unified algorithm.

4.2. The Account structure consists of sixteen numeric digits grouped into 3 blocks: (BBB)-(VVVVVVVVVVV)-(SS) (3) (11) (2) Check Digits Intra-bank Account Number Financial Institution Code

4.3. Block 1 represents the payment system participant number, which is the first three positions of the Bank Identification Code (BIC) of the bank where the client's Account is opened, and occupies positions 1-3 in the Account Number.

4.4. Block 2((1) see note) represents the intra-bank account number and occupies 11 positions of the Account Number, from position 4 to 14. The intra-bank account is assigned by the bank (bank branch). The main function of the intra-bank account in the Account Number structure is to ensure unique intra-bank identification of the client's account. The bank may, based on its objectives, planned volumes, and operational procedures, form its own intra-bank account number structure, unique per bank.

4.5. Block 3 is the check digits of the Account. The check digits are intended to ensure account accuracy verification at various stages of payment transaction processing and occupy positions 15 and 16 in the Account Number. The check digits of the Account are assigned by the bank when opening the Account to the client and are calculated as the remainder of dividing the first 14 positions of the Account by 97. If the remainder is "0", the check digits will be 97. If the remainder is a single-digit number, a leading "0" must be added.

5. Procedure for Using the Account Number

5.1. Banks assign the Account Number to their clients' Accounts, and as necessary, to other accounts.

5.2. The Account Number is intended for clients to indicate as banking details in invoices, contracts, and other documents involving non-cash payments based on these documents.

5.3. Responsibility for verifying the check digits and the accuracy of the Account Number structure lies with the bank (bank branch) initiating the payment.

5.4. Banks and payment system operators may verify account accuracy during the routing of payments from the paying bank branch to the head paying bank, from the paying bank to the payment system, and from the payment system to the receiving bank.

5.5. The receiving bank and payment system operator, having verified the accuracy of the Account Number and found numbering errors, must return the payment to the paying bank.

6. Final Provisions

6.1. To facilitate the transition to using the new Account numbering standard, banks are recommended to conduct appropriate preparation:

• Develop internal procedures for assigning, controlling, and processing Accounts;
• Make changes to the bank's software to verify and process Account Numbers;
• Develop client notification procedures to inform clients of changes to their Account Number and the need to notify their counterparties.

6.2. In the interest of clients and to reduce the risk of incorrect payment routing, as well as to avoid problems with delayed or untimely payments, banks are recommended to maintain transition tables.

Note: (1) It is desirable that the Account identifier be independent of the reform of bank reporting forms, changes in the chart of accounts, etc. It is recommended to avoid using information codes for clients' bank settlement accounts that may change over time.

Appendix No. 1 Example of calculating the check digits of a bank settlement account number

1. Initial data for calculating the Account check digits: payment system participant number (first 3 positions of BIC) - 125; intra-bank account - 12345678901; Thus, the first 14 positions of the Account Number will look as follows: 125 12345678901 We calculate the Account check digits - divide the first 14 digits of the Account Number by 97 and obtain a remainder equal to "64". As a result, the Account Number takes the following value: 125 12345678901 64

2. Example of calculating the Account check digits when the remainder is equal to "0": payment system participant number (first 3 positions of BIC) - 125; intra-bank account - 12345678934; As a result of dividing the first 14 digits of the Account Number by 97, we obtain a remainder equal to "0". Thus, the Account Number will look as follows: 125 12345678934 97

3. Example of calculating the Account check digits when the remainder is a single-digit number: payment system participant number (first 3 positions of BIC) - 125; intra-bank account - 12345678936; As a result of dividing the first 14 digits of the Account Number by 97, we obtain a remainder equal to "2", therefore, the check digits will be "02". Thus, the Account Number will look as follows: 125 12345678936 02 Initially, to calculate the Account Number check digits, one can use the EXCEL-REM function - remainder of division. For example, = REM(12512345678936; 97) will be equal to "2". One can use another calculation formula in EXCEL using the INT function. For example, = 12512345678936 - INT(12512345678936/97)*97, In this case, the result will be similar - "2".

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