Temporary Regulation on Payment Cards of the Central Treasury of the Ministry of Finance of the Kyrgyz Republic

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Date of creation: 2014-06-20

Approved

By the Resolution of the Board of the National Bank of the Kyrgyz Republic

No. 24/6 dated "30" May 2014

Temporary Regulation on Payment Cards of the Central Treasury of the Ministry of Finance of the Kyrgyz Republic

Chapter 1. GENERAL PROVISIONS

This Temporary Regulation defines the procedure for the issuance by the Central Treasury of the Ministry of Finance of the Kyrgyz Republic (hereinafter - the Treasury) of corporate payment cards (hereinafter - Treasury payment cards) and their transfer to organizations as part of the implementation of the pilot project "Budget Recipient Card", as well as the procedure for commercial banks of the Kyrgyz Republic (hereinafter - banks) to conduct acquiring of Treasury payment cards and process transactions made with their use.

The decision on the Treasury's participation in the national payment system is made by the Ministry of Finance of the Kyrgyz Republic in coordination with the National Bank of the Kyrgyz Republic (hereinafter - the National Bank).

To carry out the activity of issuing Treasury payment cards, the Treasury concludes a General Agreement with the National Bank and the operator of the national card payment clearing system.

Relations between participants in payments using payment cards, their liability, rights and obligations not regulated by this Temporary Regulation are governed by the relevant agreements and operational rules of the national card payment clearing system.

Chapter 2. DEFINITIONS

The following terms and their definitions are used in this Temporary Regulation:

1. Treasury payment card - a payment instrument enabling an organization to conduct transactions on corporate cards based on an agreement concluded by the Treasury with the operator of the national card payment clearing system. Transactions on the Treasury card are carried out by the cardholder within the amount of funds transferred by the Treasury. The card is the property of the Treasury and is provided for use to a budget organization in accordance with this Regulation, the established procedure of the Treasury and the terms of the agreement with the operator of the national payment system. The organization entrusts the use of the card to the cardholder;

2. cardholder - a person authorized by the organization to conduct transactions using the Treasury payment card based on a power of attorney and/or other documents in accordance with the legislation of the Kyrgyz Republic and the requirements of the Treasury;

3. organization - a state body, local self-government body, or budget organization that has received the Treasury payment card for use;

4. processing - activity involving the collection, processing and distribution to payment participants of information on transactions made using cards, as well as the performance of other functions provided for by relevant agreements between participants in the card payment system;

5. processing center - the Closed Joint-Stock Company "Interbank Processing Center", operator of the national card payment clearing system "Elkart";

6. participants in payments using Treasury payment cards - the Treasury, cardholder, acquirer, processing center;

7. acquirer - a commercial bank conducting acquiring of Treasury payment cards in accordance with the procedure and conditions established by the operational rules of the system and the legislation of the Kyrgyz Republic;

8. card slip - a paper document generated by a terminal, ATM or other device when processing a transaction using the card, serving as the basis for settlement of the transaction and confirming its completion.

In relations between the Treasury and other participants in the system of payments using Treasury payment cards, terms and concepts defined by the Regulation on Bank Payment Cards in the Kyrgyz Republic, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 14, 2009 No. 41/7, are also applied.

Chapter 3. OBLIGATIONS AND FUNCTIONS OF THE TREASURY ON THE ISSUANCE OF PAYMENT CARDS

The Treasury's activity on the issuance of Treasury payment cards is carried out in accordance with the obligations and functions of the Treasury under the Law of the Kyrgyz Republic "On the Basic Provisions of the Treasury of the Kyrgyz Republic".

The Treasury is the issuer of Treasury payment cards for organizations based on the national card payment clearing system "Elkart".

The Treasury's activity on the issuance of Treasury payment cards must include (but is not limited to) the following:

1. establishment of the necessary technical base and a system of regular (at least once per quarter) internal audits to ensure reliable technical condition, compliance with requirements for stable operation and data protection;

2. establishment of an internal accounting and reporting system for Treasury payment cards;

3. organization of the procedure, terms and channels for information exchange with organizations that will use Treasury payment cards, and the coordinated procedure for handling financial claims.

The Treasury must have at least the following internal procedures:

1. on organizing the process of issuance, transfer, use and return (withdrawal) of Treasury payment cards;

2. on organizing access to equipment ensuring connection with the processing center, for security and maintaining stable operation of the communication channel during information exchange;

3. on interaction with organizations regarding the procedure for obtaining and using Treasury payment cards, including conducting explanatory events for safe use of Treasury payment cards, informing about the updated list of banks and their terminals through which cardholders can make payments;

4. on accounting for the movement of funds on each Treasury payment card, maintaining a list of issued Treasury payment cards (with personal data of the cardholder);

5. on the procedure for the organization to inform the Treasury about the fact of loss, theft or use of the Treasury payment card by an unauthorized person, regarding the rights, obligations and liability of the organization;

6. on the coordinated procedure for handling financial claims;

7. on the procedure for providing a report on the movement of funds using the Treasury payment card by each organization to the Treasury, with an attached reporting form;

8. on the procedure for blocking Treasury payment cards.

The Treasury must appoint an authorized person to monitor possible risks arising from transactions with Treasury payment cards, and to collect information on all cases of failures and technical problems of the Treasury.

Chapter 4. PROCEDURE FOR ISSUANCE OF TREASURY PAYMENT CARDS AND THEIR TRANSFER TO ORGANIZATIONS

The Treasury determines the organizations to which Treasury payment cards will be issued and submits an application for the issuance of payment cards to the operator of the national payment system in accordance with the established operational rules of the system.

The Treasury payment card must be manufactured and contain mandatory details in accordance with the procedure and requirements established by normative legal acts of the National Bank regarding bank payment cards.

Treasury payment cards are issued with their approved logo and design.

The Treasury payment card is the property of the Treasury, is issued in the name of the organization and provided to it for use in accordance with this Regulation and the established procedure of the Treasury.

Treasury payment cards are debit cards, the purpose and functions of which are established by normative legal acts of the National Bank. Transactions on the Treasury payment card are carried out by the cardholder within the amount of funds transferred by the Treasury.

To manage funds on the Treasury payment card, the organization appoints a cardholder - a responsible person and submits to the Treasury the following information about him:

1. personal data of the responsible person (surname, first name, patronymic, passport details or details of another document certifying identity in accordance with the legislation of the Kyrgyz Republic) and other personal data allowing unambiguous identification;

2. a contract on the material liability of this person for improper and incorrect use of funds on the Treasury payment card and compliance with security requirements (use of PIN code, actions in case of loss and theft of the card).

Treasury payment cards are transferred to the organization based on a transfer-acceptance act and other documents, in accordance with the procedure established by the Treasury. The cardholder must familiarize himself with the terms and conditions of using the Treasury payment card and confirm its receipt in writing.

Chapter 5. PROCEDURE FOR MAKING PAYMENTS USING TREASURY PAYMENT CARDS

Payments and settlements on Treasury payment cards are carried out in the manner established by normative legal acts of the National Bank for bank payment cards, as well as in accordance with the rules of the national payment system.

The issuance of cash to cardholders and other settlements on Treasury payment cards are carried out only in the national currency.

The document confirming the issuance of cash using the Treasury payment card is a card slip. To reduce the risk of criminal acts, the card slip should not contain all information about the card number in explicit form and may contain partial information about the holder's card number in accordance with the security rules of the system.

The organization provides a report to the Treasury on transactions using the Treasury payment card according to the form and terms established by the internal procedures of the Treasury.

The Treasury maintains accounting for transactions using the Treasury payment card in its internal automated system based on transactions carried out by the cardholder, in accordance with the legislation of the Kyrgyz Republic and accounting rules.

Based on statements of the movement and balance of funds on Treasury payment cards received from the operator of the national payment system, the Treasury verifies the receipt of cash by the organization.

In case a payment is recognized as erroneous or disputed after final settlements are made, the organization notifies the Treasury, which submits a claim in the manner and in accordance with the terms of the agreement with the operator of the national payment system and the operational rules of the system.

Chapter 6. BLOCKING, ADDITION TO THE STOP-LIST AND WITHDRAWAL OF TREASURY PAYMENT CARDS

The Treasury may block or withdraw a Treasury payment card in the following cases:

1. violation of the rules for using the Treasury payment card by the cardholder;

2. expiration of the validity period of the Treasury payment card;

3. other cases provided for by the operational rules of the system and the legislation of the Kyrgyz Republic.

In case of termination of service for the Treasury payment card, the Treasury must notify the organization thereof in the manner established by the Treasury.

The Treasury must enter the details of the Treasury payment card into the system's stop-list upon receipt of a notification and application from the cardholder and/or the organization for cases specified in paragraph 26 of this Temporary Regulation.

The terms and methods for notifying the Treasury and submitting an application regarding loss, theft or unauthorized use of the Treasury payment card by the organization, as well as the terms for this notification to take effect, are established by the Treasury, in accordance with the regulations and procedure of the national payment system. The cardholder bears responsibility for the timeliness of submitting the application.

Chapter 7. REQUIREMENTS FOR THE ACQUIRER AND ACQUIRING

Requirements for the acquirer and acquiring of Treasury payment cards are established by normative legal acts of the National Bank.

The acquirer is obliged to ensure the ability to accept and service Treasury payment cards in its own network of terminals. Any contractual relations between acquirers with third parties must not create barriers and restrictions on servicing Treasury payment cards by other acquirers.

Chapter 8. REQUIREMENTS FOR PROCESSING AND THE PROCESSING CENTER AND PROCEDURE FOR FINAL SETTLEMENTS

Processing of transactions with Treasury payment cards must be carried out by the operator of the national card payment clearing system within the territory of the Kyrgyz Republic in accordance with the requirements of normative legal acts of the National Bank and the operational rules of the system.

Transactions made using Treasury payment cards are considered irrevocable for the cardholder at the moment of receiving confirmation of the transaction (transaction) in a peripheral device or bank, and final - at the moment of debiting funds from the cardholder's account opened in the Treasury's internal automated system.

Transactions made using Treasury payment cards are considered irrevocable for the Treasury and the acquirer from the moment of completion of processing in the national card payment clearing system, and final at the moment of settlement through correspondent accounts opened in the National Bank.

Chapter 9. FINAL PROVISIONS

The National Bank carries out monitoring, analysis, regulation and supervision of the implementation of the pilot project using Treasury payment cards in accordance with normative legal acts of the National Bank.

The Treasury provides the National Bank with information on the payment cards issued by it in accordance with the forms and terms established by the legislation of the Kyrgyz Republic for bank payment cards.

The processing center provides the National Bank with information regarding the functioning of Treasury payment cards in accordance with the forms and terms established by the legislation of the Kyrgyz Republic.

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