Circular SINAP 1-65: National Payments System – Immediate Debit (DEBIN). Consolidated Text.

“2017 - YEAR OF RENEWABLE ENERGIES
COMMUNICATION “A” 6285 24/07/2017
TO FINANCIAL ENTITIES,
TO ELECTRONIC COMPENSATION CHAMBERS,
TO ATM NETWORK OPERATING COMPANIES:
Ref.: Circular
SINAP 1 - 65
National Payments System – Immediate Debit. Consolidated Text.
____________________________________________________________ We address you to provide you with the consolidated text of the regulations on “National Payments System – Immediate Debit” (DEBIN) which replaces the provisions disseminated through Communication “A” 6099 and complementary ones, based on what has been resolved by this Institution. Likewise, it is recalled that on this Institution’s website www.bcra.gob.ar, by accessing “Financial and Payment Systems - LEGAL AND REGULATORY FRAMEWORK - Consolidations and summaries - Consolidated texts of general regulations”, the modifications made with text highlighted in special characters (strikethrough and bold) will be found. We salute you attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC María Eugenia Limeres Julio César Pando Deputy Manager of Securities Systems General Deputy Manager of Payment Means
ANNEX

-IndexSection 1. Introduction.
1.1. Definitions.
1.2. Objective.
Section 2. General characteristics.
2.1. Scope.
2.2. Participants.
2.3. Currency.
2.4. Operating hours and crediting deadlines.
2.5. Cost.
Section 3. Processes and functions.
3.1. Functionality for adherence to DEBIN operations.
3.2. DEBIN generation functionality.
3.3. Functionality for accepting DEBINs.
3.4. Administration module.
Section 4. Guarantees
4.1. Guarantees
4.2. Calculation of guarantees.
4.3. Availability of guarantees.
4.4. Balance settlement scheme.
Section 5. Responsibilities.
5.1. Of the processor/operator.
5.2. Of the administrator.
5.3. Of the generator.
5.4. Of the authorizer.
Section 6. Surveillance.
Section 7. Security.
Correlation table.
B.C.R.A.
CONSOLIDATED TEXT OF THE REGULATIONS ON
“NATIONAL PAYMENTS SYSTEM – IMMEDIATE DEBIT”
Version: 1st. COMMUNICATION “A” 6285
Validity:
25/7/2017

1.1. Definitions.
1.1.1. Immediate debit (DEBIN) is a transfer mechanism that debits the financial client's account, once authorized by said client.
It is implemented through internet banking, mobile banking, and in other channels that the Central Bank of the Argentine Republic (BCRA) may make available at any time.
The mechanism may consist of:

• a debit request entered through the channels specified by the client whose account is to be credited, to be authorized by the client whose account is to be debited,
• the online authorization of the debit for the client whose account is to be debited and
• the online debit in the account of the client whose account is to be debited and the online credit in the account of the client to be credited.
  or,
• an online credit order entered through the channels authorized by the client whose account is to be debited and
• the online debit in the account of the client whose account is to be debited and the online credit in the account of the client to be credited.
  1.1.2. Administrator: processes debits and credits of the operation, settling net balances at the BCRA.
  1.1.3. Processor: links the generators and authorizers of DEBINs with the administrator. Financial entities may act as processors directly.
  1.1.4. Generator: facilitates adherence to the operation, originates DEBINs and, if applicable, credits the funds in the corresponding accounts.
  1.1.5. Authorizer: receives debit requests and provides its clients with mechanisms to accept or reject them.
  1.1.6. Operator: links clients with the generators and authorizers of DEBINs.
  1.2. Objective.
  The DEBIN operation aims to provide clients with secure and accessible mechanisms that facilitate -through various channels- the execution of a wide range of operations involving online debits and credits; contributing to a more efficient payment system in accordance with international best practices in the matter. This mechanism allows clients to generate collection requests intended for other clients, which, once authorized by the latter, will generate an immediate payment. It also enables the client to originate an immediate payment to another client. Version: 1st. COMMUNICATION “A” 6285 Validity:
  25/7/2017
  NATIONAL PAYMENTS SYSTEM – IMMEDIATE DEBIT B.C.R.A.
  Section 1. Introduction.

2.1. Scope.
DEBINs may be generated by natural and legal persons, holders of accounts in financial entities that, due to their characteristics, are authorized to perform account debits or receive account credits. To this end, they must access the specific menu options, made available in the established channels.
2.2. Participants.

• Clients: natural or legal persons who, having an account in financial system entities, adhere to the DEBIN operation, generating or accepting DEBINs.
• Operators: financial entities or third parties designated by the generators and authorizers of DEBINs to link with clients.
• Generators: financial entities or those that the BCRA may authorize in the future.
• Authorizers: financial entities that have debit requests to process.
• Processors: financial entities or third parties designated by them to communicate with the administrator.
• Administrator: Low-Value Electronic Clearing House.
• The High-Value Electronic Clearing House may participate as an operator and/or processor of DEBINs.
  2.3. Currency.
  The operation will be available for debits in pesos and US dollars, between accounts of the same currency.
  2.4. Operating hours and crediting deadlines.
  The DEBIN operation will be enabled every day, 24 hours a day.
  2.5. Cost.
  Account debits resulting from the DEBIN operation will be free of charge.
  Account credits resulting from the DEBIN operation cannot be subject to charges and/or commissions by the entities that debit the corresponding funds. Only the financial entity receiving the funds may apply charges and/or commissions on these operations for the service provided; which must be disclosed to the client, prior to confirming the operation, when dealing with financial services users. B.C.R.A.
  Section 2. General characteristics.
  Version: 1st. COMMUNICATION “A” 6285
  Validity:
  25/7/2017

3.1. Functionality for adherence to DEBIN operations.
This functionality must be included as an option “DEBIN Adherence” within the menu option “DEBIN Payments”, in internet banking (“home banking”) and mobile banking channels, and in other channels that the BCRA may make available at any time. Financial entities may resolve the development of this requirement directly or through third parties (operators), in a non-exclusive manner.
3.1.1. It will allow the client holding the account to be credited to initiate adherence to the operation every day, 24 hours a day. To this end, the client must register the alias or CBU of the account they wish to incorporate into the DEBIN operation. Within the framework of the “know your client” policy, the financial entity, once verified compliance with the established requirements, must enable the client to operate DEBIN requests. Otherwise, it must provide a response justifying the refusal.
3.1.2. It will interact with the administration module to perform relevant validations and register in the reservoir the CBUs and/or aliases that the client integrated into the DEBIN operation.
3.2. DEBIN generation functionality.
This functionality must be included as an option “DEBIN Order” within the menu option “DEBIN Payments”, in internet banking (“home banking”) and mobile banking channels, and in other channels that the BCRA may make available at any time. Financial entities may resolve the development of this requirement directly or through third parties (operators), in a non-exclusive manner. This functionality:
3.2.1. Will allow the client holding the account to be credited to generate, every day, 24 hours a day, a DEBIN request, which, to be effective, must be authorized by the client holding the account to be debited. To this end, the functionality must allow entering the following data, considering the provisions referred to the entry of “aliases”, included in the section “Security”:

• Alias or CBU of the client holding the account to be credited.

• Alias or CBU of the client holding the account to be debited.

• Concept: the reference by which the client uniquely identifies the DEBIN to be issued can be selected using one of the following concepts:

• Rents: ALQ

• Installments: CUO

• Maintenance fees: EXP

• Bills: FAC

• Loans: PRE

• Insurance: SEG

• Fees: HON

• Income: HAB

• Others: VAR

• Description up to 100 characters.

• Amount to transfer.
  NATIONAL PAYMENTS SYSTEM – IMMEDIATE DEBIT B.C.R.A.
  Section 3. Processes and functions.
  Version: 1st. COMMUNICATION “A” 6285
  Validity:
  25/7/2017

• Validity of a DEBIN: will allow the client holding the account to be credited to define its maximum validity in a value in minutes between 10 and 4,320 (equivalent to 3 days).
  The expiration time will be controlled until acceptance or rejection; once the deadline has expired, the DEBIN in question will remain unexecuted.
  In the case where the authorizer has indicated the acceptance and debit of the DEBIN by sending the message to the administrator indicating such activity before the date/time of its expiration, the DEBIN will continue its execution regardless of when its expiration occurs from that moment onward.
  3.2.2. Will generate the DEBIN order registering the following minimum data:

• Date/time of the operation.

• Entity to be debited.

• Branch to be debited.

• Alias of the client holding the account to be debited.

• CBU of the account of the client holding the account to be debited.

• Name of the client holding the account to be debited.

• CUIT/CUIL/CDI/DNI of the client holding the account to be debited.

• Amount.

• Concept -according to typification of point 3.2.1-.

• Description -according to specification of point 3.2.1-.

• Beneficiary entity –receiver of the credit–.

• Beneficiary branch –receiver of the credit–.

• Alias of the client holding the account to be credited.

• CBU of the account of the client holding the account to be credited.

• Name of the client holding the account to be credited.

• CUIT/CUIL/CDI/DNI of the client holding the account to be credited.
  3.2.3. Once the operation is completed, the functionalities of the involved entities will confirm to participating clients that the DEBIN was registered, through screen information and confirmation via messaging. All transactions involved will be replicated to the administration module for inclusion in the reservoir or for recording the activity.
  3.3. Functionality for accepting DEBINs.
  This functionality must be included as an option “DEBIN Acceptance” within the menu option “DEBIN Payments”, in internet banking (“home banking”) and mobile banking channels, and in other channels that the BCRA may make available at any time. Financial entities may resolve the development of this requirement directly or through third parties (operators), in a non-exclusive manner.
  3.3.1. Will allow the client holding the account to be debited to authorize, every day, 24 hours a day, the
  Version: 1st. COMMUNICATION “A” 6285
  Validity:
  25/7/2017
  B.C.R.A.
  Section 3. Processes and functions.

debit request issued by the client holding the account to be credited.
To this end, the application must display on screen the DEBIN request registered for the account, including the following minimum data:

• Date/time of the operation.
• Entity to be debited.
• Branch to be debited.
• Alias of the client holding the account to be debited.
• CBU of the account of the client holding the account to be debited.
• Name of the client holding the account to be debited.
• CUIT/CUIL/CDI/DNI of the client holding the account to be debited.
• Amount.
• Concept –according to typification of point 3.2.1–.
• Description –according to specification of point 3.2.1-.
• Beneficiary entity –receiver of the credit–.
• Beneficiary branch –receiver of the credit–.
• Alias of the client holding the account to be credited.
• CBU of the account of the client holding the account to be credited.
• Name of the client holding the account to be credited.
• CUIT/CUIL/CDI/DNI of the client holding the account to be credited.
  3.3.2. The client holding the account to be debited will confirm or reject the operation. If the DEBIN request was authorized, the balance will be verified and, if feasible, the debit will be effected. It will interact with the administration module to perform verification and administration of the coverage scheme and, if applicable, confirm the generation of the DEBIN; emitting information to the authorizer and generator for the completion of the online credit in the beneficiary client's account.
  If the operation is not confirmed or rejected within the period indicated in point 3.2.1 under “Validity of a DEBIN”, it will become void.
  3.3.3. The client holding the account to be debited may:
  3.3.3.1 Determine maximum amounts of DEBINs to be debited, associating timeframes to such limitation.
  3.3.3.2. Authorize permanently to request DEBINs, to holders of accounts to be credited whose activity implies sending debit requests on a recurring basis. In these cases, authorization for each operation will not be required to proceed with the respective debit in the account. For the purpose of identifying such holders, the client holding the account to be debited must provide the aliases or the CBU(s) corresponding. Additionally, in these cases, the authorizer must allow holders of accounts to be debited to:
• Define a maximum amount to be debited per DEBIN.
• Temporarily cancel such authorization.
  This functionality corresponds to financial entities or those they designate and may be effected using the channels enabled for this operation, for example: “home banking”.
  B.C.R.A.
  Section 3. Processes and functions.

3.4. Administration module.
The administration module, whose development and management will be the responsibility of the administrator, will have the function of processing debits and credits. The design contemplated will be aligned with the international premises imparted in the modernization of the payment structure promoted by this Institution, including aspects of integration and interoperability. The module must execute the following actions:
3.4.1. Administration Module Functionality.
The product will consist of the following modules:

• DEBIN
• Guarantees
• Adherences
• Banks
  3.4.1.1. DEBIN:
  It will contain the main functionality of the product, managing all operations related to its operation, namely:
• New DEBIN: the generator must send this message at the moment a new DEBIN operation is generated.
• Debit confirmation: the authorizer will send the debit confirmation once the client holding the account to be debited accepts the operation and that the debit has been effected for the amount informed in the operation in the client's account. The administrator will perform guarantee control for the DEBIN product and inform the entity if it continues with the DEBIN operation, or if it must reverse the debit, due to insufficient guarantees or other problems.
• Delete a DEBIN: the generator may delete it as long as the DEBIN has not yet been debited from the account of the client holding the account to be debited.
• DEBIN Inquiry: the client holding the account to be debited and the client holding the account to be credited, through their respective financial entities, may request information on a DEBIN and its status.
• List DEBIN: both the client receiving the funds and the one transferring them may request a list of DEBINs through their entity. The data of the debited or credited client will be required exclusively. This list will show exclusively the operations generated and received by the client.
• Set entity status online/offline.
  Version: 1st. COMMUNICATION “A” 6285
  Validity:
  25/7/2017
  B.C.R.A.
  Section 3. Processes and functions.

3.4.1.2. Guarantees:
It must allow performing the following operations:

• Settlements: the entity may consult the status of the last closed settlement. The administrator will return the amount of each of the currencies operating in the product, indicating in each case if they have already been paid or are pending payment.
• Movements: the entity may consult the totals of debit and credit movements by currency.
  3.4.1.3. Adherences:
  It must allow performing the following operations:
• Adherence of the client holding the account to be credited: the generator will request the adherence of the same via call to the DEBIN interface, indicating the necessary data to perform the operation.
• Cancellation of the client holding the account to be credited: the DEBIN generator may request the cancellation of the adherence to the operation.
  3.4.1.4. Banks:
  Each of the financial entities through its enabled channels must have a service that allows it to receive notifications from the administrator via invocations made to said services.
  It must allow performing the following operations:
• Notice of a new DEBIN: the administrator will notify the DEBIN authorizer. The entity must respond to this notice so that the administrator confirms receipt by the entity.
• Notice of DEBIN completion: this notice will indicate that a DEBIN has ended correctly, executing the corresponding debit and credit operations.
• Credit: the administrator will request the generator to perform the credit in the account of the client holding the account to be credited previously informed. This message must be responded to synchronously, indicating whether the credit could be performed or not.
• Debit: the administrator will request the authorizer to perform the debit in the account of its client. This message must be responded to synchronously, indicating whether the debit could be performed or not.
  Version: 1st. COMMUNICATION “A” 6285
  Validity:
  25/7/2017
  B.C.R.A.
  Section 3. Processes and functions.

3.4.2. Payments.
The module will also process transactions related to payments made via immediate transfers processed through the channels enabled by this BCRA.
To this end, all financial entities must be in a position to receive and process debit or credit orders sent by the administration module, emitting the respective confirmation:

• The administration module will receive the transfer order from the processor, emitting information to the functionality of the entity to be debited, which will verify the balance, and debit the client's account, confirming the operation to the administration module. The administrator will perform verification and administration of the coverage scheme. Similarly, the module will emit information to the functionality of the entity to be credited for the completion of the online credit in the account of the client holding the account to be credited.
• Once the operation is completed, the functionalities of the involved entities will confirm to participating clients that the payment was registered via immediate transfer, presenting information on screen and sending confirmation via messaging. All transactions involved will be replicated to the administration module for inclusion in the reservoir or for recording the activity.
  3.4.3. Coverage scheme.
  The operation will have a specific coverage scheme to ensure the viability of debits and credits.
  The administration module will verify and administer coverage through online compensation of debits and credits, backed by guarantees constituted by each entity for the operation, according to Section 4. Guarantees. It will also settle net compensation balances in the LBTR system “Electronic Payment Means” (MEP). The administrator will establish an operating cutoff time, and DEBIN orders made after said time will be considered in the compensation of the next business day.
  3.4.4. Storage.
  The reservoir will contain the adhered CBUs and aliases. On the other hand, it will safeguard the DEBIN orders entered and the debit and credit transactions of the registered DEBINs. It will also maintain the activity record preserving the remaining transactions entered in the operation. It will allow data exploitation for the purposes of evolutionary analysis inherent to the exercise of BCRA surveillance. Additionally, it will provide the information necessary for financial entities and other bodies to carry out controls related to money laundering, terrorist financing, and other illicit activities, and/or perform other verifications, as appropriate. Version: 1st. COMMUNICATION “A” 6285 Validity:
  25/7/2017
  B.C.R.A.
  Section 3. Processes and functions.

Version: 1st. COMMUNICATION “A” 6285
Validity:
25/7/2017

4.1. Guarantees.
The coverage of net debtor balances originated in the clearing of DEBINs must be guaranteed, avoiding risks that could potentially affect the entire system.
The scheme for establishing guarantees provided for the cancellation of DEBIN operation balances, through the administrator, must comply with the following provisions.
The administrator will accept DEBIN operations up to the amount covered by the guarantee constituted at the BCRA, by mutual agreement between the parties, plus the credits made by the entities in the administrator's account. The insufficiency of the guarantee will limit the activity of the DEBIN authorizer, without giving rise to consequences for third parties.

4.2. Calculation of guarantees.
Financial entities, in order to provide the DEBIN operation service, must constitute guarantees for each class of currency that is settled.
The amount of said guarantees will be established by mutual agreement between the entities and the administrator, taking into account that it must be sufficient to constantly cover the respective net debtor balances emerging from received and ordered transactions. In this regard, the administrator will be responsible for monitoring the classification of entities within the guarantee scheme, generating alerts in compliance with the escalation policy, and managing the expected actions in the event of incidents. Under no circumstances can operations that are not covered by the guarantee be processed. Likewise, entities must inform their clients, in the event of impossibility of completing the DEBIN due to insufficient guarantees, regarding the responsibility that pertains to the entity in this matter. In the event that the debtor balance reaches the guaranteed amount, entities must transfer, through the MEP, to the administrator's account opened at the BCRA, the funds that increase said amount to allow the processing of the aforementioned DEBINs.

4.3. Availability of Guarantees.
The administrator must request from the BCRA - Current Accounts Department - for each adhering entity, the opening of special guarantee accounts in the different classes of currencies in which compensations authorized by the BCRA are carried out, whose operation will comply with the guidelines indicated below, in order to keep the constituted guarantees available for immediate application:

• Ownership:
  To cover the clearing of DEBINs: The accounts will be designated "administrator's abbreviated name / adhering entity name / DEBIN".

• Availability of balances: Checkbooks will not be enabled.

They will be available via transfer to the current account of the entity or the administrator. Debits in the account will be ordered solely and exclusively by the administrator, through the OWA-user Guarantees mailbox for entities.

• Origin of credits: The crediting of funds in the special guarantee accounts will have no type of limitation or conditioning.

• Destination of debits: Only debits whose destination is the administrator's operational current account, by application of the guarantee, or the adhering entity's current account, by reimbursement of excess constituted guarantee, will be processed.

4.4. Settlement scheme for balances.
The settlement procedure provided for the cancellation of balances of operations between entities providing the DEBIN service must comply with the following:

4.4.1. On business days, the administrator must generate the net debtor and creditor balances of all operations involved and inform these same balances to its adhering entities.

4.4.2. All entities must pay the debtor balances within the established hours, through transfers processed via the MEP to the account that the administrator determines for the payment of said operations, using payment instructions including the phrase "DBIN", to be paid.

4.4.3. If, within the time frame defined between the administrator and the entity, any debtor entity has not deposited the total sum in the determined account, the administrator will proceed to liquidate the guarantee.

4.4.4. Once all debtor balances are covered, the administrator will proceed to transfer the funds to the entities presenting a creditor balance, debiting its account and crediting each entity's account at the BCRA. At the same time, it will return to the entities the sums deposited in excess.

5.1. Of the processor/operator.
5.1.1. Assume responsibility for the correct processing of electronic information transmitted to the actors/processes involved in the operation.
5.1.2. Manage communications between its computer center, other processors/operators, the administration module, and participating entities.
5.1.3. Keep functionalities available and operational during the daily operational cycle in the established schedule.
5.1.4. Interact with the administration module, other processors/operators, and participating entities, guaranteeing the update and flow of information for the purpose of carrying out the DEBIN operation.
5.1.5. Implement and maintain the necessary mechanisms and processes to guarantee the security of the operation.

5.2. Of the administrator.
5.2.1. Assume responsibility for the correct processing of electronic information transmitted to the other actors/processes involved in the operation.
5.2.2. Implement applications that allow the validation and registration of the CBU aliases that the client integrated into the DEBIN operation, the validation and verification of DEBIN orders, the clearing of approved DEBIN transactions, and the administration of the coverage scheme, registering the DEBINs in the reservoir.
5.2.3. Keep functionalities available and operational during the daily operational cycle in the established schedule.
5.2.4. Interact with the processor(s) and financial entities, guaranteeing the update and information flow for the purpose of carrying out the DEBIN operation.
5.2.5. Register the replicated information including the different instances of the operations (adhered CBUs, DEBIN orders, their status - fulfilled or rejected - and, where applicable, the registered DEBINs), and administer the DEBIN reservoir, generating query modules that allow control of the evolution of the operation.
5.2.6. Implement and maintain the necessary mechanisms and processes to guarantee the security of the operation.
5.2.7. Manage communications between its computer center, the processor(s), and the financial entities.

5.3. Of the generator:
5.3.1. Assume responsibility for the correct processing of electronic information transmitted to the actors/processes involved in the operation.
5.3.2. Manage communications between its computer center, the administration module, and the operators.
5.3.3. Keep functionalities available and operational during the daily operational cycle in the established schedule.
5.3.4. Interact with the administration module, processors, operators, and authorizers, guaranteeing the update and flow of information for the purpose of carrying out the DEBIN operation.
5.3.5. Implement and maintain the necessary mechanisms and processes to guarantee the security of the operation.
5.3.6. Assume responsibility for all debit orders generated by its clients, within the framework of the "know your client" policy and as a consequence of having previously authorized their adherence to the DEBIN operation, in accordance with point 3.1.

5.4. Of the authorizer:
5.4.1. Assume responsibility for the correct processing of electronic information transmitted to the actors/processes involved in the operation.
5.4.2. Manage communications between its computer center, the administration module, and the operators.
5.4.3. Keep functionalities available and operational during the daily operational cycle in the established schedule.
5.4.4. Interact with the administration module, processors, operators, and generators, guaranteeing the update and flow of information for the purpose of carrying out the DEBIN operation.
5.4.5. Implement and maintain the necessary mechanisms and processes to guarantee the security of the operation.
5.4.6. Request client authorization for the debit to be made, manage information on limits and recurring payments, and manage the authorization thereof.

The DEBINs subject to this regulation must be individualized by the origin modality of the operation and comply with the surveillance mechanisms to be defined in due course.

The functionalities must have an appropriate level of security so that the client is not exposed to the improper use of their account, the genuineness of the operations is guaranteed, and the pertinent record of the transactions is generated. Likewise, both the operation defined in this regulation and the following system participants: generators, authorizers, processors, DEBIN operators, and the administrator of the DEBIN operation, must comply with the requirements established in Section 6 of the regulations on "Minimum requirements for management, implementation, and control of risks related to computer technology, information systems, and associated resources for financial entities". Applications in which the client is required to enter the "alias" of a CBU must present the client with a confirmation screen, which will have, at a minimum, the following data: account type, CBU, alias, holder's name, account number, bank, and CUIT/CUIL/CDI/DNI. The user may cancel the operation, which will only be confirmed when they effectively select the corresponding option. Additionally, the mechanisms established in this regulation must comply with the technical security provisions established by this Institution.