Implementation of Extended Operating Hours for ZIPSS and CSD

[Logo: Bank of Zambia] Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS

BOZ/EXEC/DGO/psd/bp

September 16, 2024

CB Circular No. : 16/2024

To : All Heads of Commercial Banks

IMPLEMENTATION OF EXTENDED OPERATING HOURS ON THE ZAMBIA INTERBANK PAYMENT AND SETTLEMENT SYSTEM AND THE CENTRAL SECURITIES DEPOSITORY

Reference is made to our letter dated May 31, 2024, on the above subject.

In line with the Bank of Zambia Strategic Plan 2024 to 2027, the operating hours of the Zambia Interbank Payment and Settlement System (ZIPSS) and Central Securities Depository (CSD) will be extended. This extension aims to support a 24/7 digital economy, align with the global settlement window to promote cross-border payments, reduce settlement risk, and facilitate Government revenue collection.

Following consultations with the commercial banks and various stakeholders on the initiative, the Bank has scheduled a six-month pilot beginning on October 1, 2024 to March 31, 2025. During this phase, the ZIPSS and CSD will open at 07:00 hours and close at 19:30 hours on weekdays, and from 10:00 hours to 14:30 hours on Saturdays.

Therefore, participants must ensure that the platforms used by customers to generate payments, core banking systems and other support infrastructures including human resources, remain available during the extended operating hours. Participants will also be required to adequately manage risks associated with the extended operating hours and must ensure that straight through processing requirements, as outlined in the ZIPSS Rules, are upheld to promote efficiency of payments.

In this regard, kindly ensure that you plan and prepare for the commencement of the pilot on October 1, 2024. The timetables for the pilot are attached for your reference.

[Signature]

Francis Chipimo (PhD) DEPUTY GOVERNOR

cc Governor Deputy Governor – Administration Chief Executive Officer – Zambia Electronic Clearing House Limited Chief Executive Officer – Bankers Association of Zambia

Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm

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MONDAY TO FRIDAY TIMETABLE

TIME	EVENT	ACTIVITY
07:00	Start of Day	• ZIPSS Start-of-Day.<br>• Settlement of ZIPSS charges.<br>• BoZ Housekeeping.<br>• Only BoZ may submit transactions.
07:15	Open for Business	• ZIPSS is open for business and can process all transactions from all participants.<br>• ZIPSS shall process Net Settlement Instructions (NSIs) from the clearing house.<br>• ZIPSS shall process NSIs for other clearing institutions such as the Lusaka Securities Exchange and VISA.
19:00	Initial Cut-off (Cut-off for Customer Payments)	• ZIPSS shall no longer accept pacs.008 payments.<br>• pacs.009 payments shall continue to be processed.
19:15	Final Cut-off (Cut-off for Interbank Transfers)	• ZIPSS will repay all ILF drawings made by participants. Participants must ensure sufficient funds on the SA to allow automatic repayment of ILF at Final Cut-off or the ILF obligation will be converted to OLF.<br>• Only BoZ can submit transactions for settlement.<br>• System is closed, settlement will cease and any queued transactions will be cancelled.<br>• Final Cut-off reports are generated.
19:30	End of Day	• ZIPSS End of Day reports available for downloading.
	After End of Day until next Start-of-Day	• Camt.053 statement reports are sent to participants via Swift.<br>• Participants can access reports from the system.

Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm

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SATURDAY TIMETABLE

TIME	EVENT	ACTIVITY
10:00	Start of Day	• ZIPSS Start-of-Day.<br>• Settlement of ZIPSS charges.<br>• BoZ Housekeeping.<br>• Only BoZ may submit transactions.
10:15	Open for Business	• ZIPSS is open for business and can process all transactions from all participants.<br>• ZIPSS shall process Net Settlement Instructions (NSIs) from the clearing house.<br>• ZIPSS shall process NSIs for other clearing institutions such as the Lusaka Securities Exchange and VISA.
14:00	Initial Cut-off (Cut-off for Customer Payments)	• ZIPSS shall no longer accept pacs.008 payments.<br>• pacs.009 payments shall continue to be processed.
14:15	Final Cut-off (Cut-off for Interbank Transfers)	• ZIPSS will repay all ILF drawings made by participants. Participants must ensure sufficient funds on the SA to allow automatic repayment of ILF at Final Cut-off or the ILF obligation will be converted to OLF.<br>• Only BoZ can submit transactions for settlement.<br>• System is closed, settlement will cease and any queued transactions will be cancelled.<br>• Final Cut-off reports are generated.
14:30	End of Day	• ZIPSS End of Day reports available for downloading.
	After End of Day until next Start-of-Day	• Camt.053 statement reports are sent to participants via Swift.<br>• Participants can access reports from the system.

Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm