Liability Manager Limits in LankaPay Common ATM Switch and LankaPay Common Electronic Fund Transfer Switch

# CENTRAL BANK OF SRI LANKA

## Payments and Settlements Department

23 October 2018

### Payment and Settlement Systems Circular No. 07 of 2018

**To:** All Primary Members of Common ATM Switch and Common Electronic Fund Transfer Switch and LankaClear (Pvt) Ltd

### Liability Manager Limits in LankaPay Common ATM Switch and LankaPay Common Electronic Fund Transfer Switch

Considering the number of transaction rejections due to insufficient Liability Manager (LM) limits set by member institutions in LankaPay Common ATM Switch (CAS) and LankaPay Common Electronic Fund Transfer Switch (CEFTS) the Monetary Board of the Central Bank of Sri Lanka (CBSL) has approved imposing a multi-tiered LM limit structure to provide effective payment and settlement services to the customers. Initially, the multi-tiered LM limit structure will apply only to Primary Members of CAS and CEFTS.

2. Accordingly, Primary Members will be grouped in to three categories as per the list given in Annex I and minimum LM limits will be defined for CAS and CEFTS for each category as given in the following tables.

#### i. Minimum LM Limits for CAS

| | Category A | Category B | Category C |
|---|---|---|---|
| Category A | Rs. 200 Mn | Rs. 150 Mn | Rs. 100 Mn |
| Category B | Rs. 150 Mn | Rs. 150 Mn | Rs. 100 Mn |
| Category C | Rs. 100 Mn | Rs. 100 Mn | Rs. 100 Mn |

#### ii. Minimum LM Limits for CEFTS

| | Category A | Category B | Category C |
|---|---|---|---|
| Category A | Rs. 250 Mn | Rs. 200 Mn | Rs. 150 Mn |
| Category B | Rs. 200 Mn | Rs. 200 Mn | Rs. 150 Mn |
| Category C | Rs. 150 Mn | Rs. 150 Mn | Rs. 150 Mn |

3. LankaClear (Pvt) Ltd. shall implement and maintain the minimum LM limits defined by CBSL in CAS and CEFTS Systems and accommodate requests made by Primary Members to set LM limits higher than the minimum LM limits defined by CBSL.

4. Minimum LM limits assigned for any or all category/ies and categorization of Primary Members would be periodically reviewed by CBSL and revised, if necessary.

5. Primary Members were categorized in this manner for the sole purpose of defining minimum LM limits and shall not be used for any other purpose.

6. This Circular will be effective from 01 November 2018.

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**D Kumaratunge**  
Director Payments and Settlements

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Level 8, No. 30, Janadhipathi Mawatha, Colombo 1  
P. O. Box 590, Colombo 01, Sri Lanka.  
www.cbsl.gov.lk  
psd@cbsl.lk  
94 11 2477642 | 94 11 2387009

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## Annex I

### Primary Members of Common ATM Switch and/or Common Electronic Fund Transfer Switch

#### • Category A

| |
|---|
| People's Bank |
| Bank of Ceylon |
| Commercial Bank of Ceylon PLC |
| Sampath Bank PLC |
| Hatton National Bank PLC |

#### • Category B

| |
|---|
| Seylan Bank PLC |
| National Development Bank PLC |
| Nations Trust Bank PLC |
| DFCC Bank PLC |
| The Hongkong & Shanghai Banking Corporation Ltd. |

#### • Category C

| |
|---|
| Pan Asia Banking Corporation PLC |
| Standard Chartered Bank |
| Union Bank of Colombo PLC |
| Amana Bank PLC |
| Cargills Bank Ltd. |
| Citibank N.A. |
| MCB Bank Ltd. |
| Deutsche Bank AG |
| State Bank of India |
| Axis Bank Ltd. |
| Indian Bank |
| Habib Bank Ltd. |
| Public Bank Berhad |
| ICICI Bank Ltd. |
| Indian Overseas Bank |

This categorization is for the sole purpose of imposing the multi-tiered LM limit structure and shall not be used for any other purpose.