Instruction on the Procedure for Conducting Payments in the System of Batch Clearing of Small Retail and Regular Payments in the Kyrgyz Republic

Back to top

Print version

Date of creation: 2021-12-01

Registered in the Ministry of Justice of the Kyrgyz Republic on October 4, 2007. Registration number 88-07

Approved by the ruling of the Board of the National Bank of the Kyrgyz Republic dated August 22, 2007 No. 38/11

INSTRUCTION on the procedure for conducting payments in the System of Batch Clearing of Small Retail and Regular Payments in the Kyrgyz Republic

(As amended by rulings of the Board of the National Bank of the KR dated December 12, 2007 No. 53/6, January 30, 2008 No. 5/1, June 27, 2008 No. 25/12, December 10, 2008 No. 45/7, September 30, 2009 No. 39/8, March 30, 2011 No. 20/6, June 14, 2017 No. 2017-P-19/24-8, November 24, 2021 No. 2021-P-14/64-6-(PS))

The table of contents has lost its force in accordance with the ruling of the Board of the National Bank of the Kyrgyz Republic dated November 24, 2021 No. 2021-P-14/64-6-(PS)

1. General Provisions
   1.1. (Lost force in accordance with the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8)
   1.2. This Instruction establishes the rules, procedure for preparation, transmission and processing of payment documents, as well as the relationships between participants in conducting payments through the System of Batch Clearing of Small Retail and Regular Payments in the Kyrgyz Republic (hereinafter referred to as the System).
   1.3. The purpose, objectives, tasks and main provisions governing the operation of the System are established in the Regulation "On the System of Batch Clearing of Small Retail and Regular Payments in the Kyrgyz Republic", approved by the ruling of the Board of the National Bank of the Kyrgyz Republic dated December 15, 2005 No. 37/8 and registered in the Ministry of Justice of the Kyrgyz Republic on January 18, 2006 No. 8-06 (hereinafter - the Regulation on SBC).
   (As amended by the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8)
   1.4. Risk management principles and methods in the System are set forth in the Policy on Risk Management in the Payment Systems of the Kyrgyz Republic, approved by the ruling of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2016 No. 25/8, and in the Regulation on SBC. The System enables risk management and minimization associated with payments by establishing limits for net debit positions (reserve and settlement limit).
   (As amended by the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8)
   1.5. Formats of electronic payment documents and System messages are established in the "Rules for Filling Out Formats of Electronic Payment Documents and Messages of the System of Batch Clearing of Small Retail and Regular Payments in the Kyrgyz Republic", approved by the ruling of the Board of the National Bank of the Kyrgyz Republic dated March 2, 2006 No. 5/10 and registered in the Ministry of Justice of the Kyrgyz Republic on March 23, 2006 No. 25-06 (hereinafter - the Rules for Filling Out Formats).
   (As amended by the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8)
   1.6. The procedure for conducting payments in the form of direct debit in the System is set forth in the "Rules for Conducting Payments in the Form of Direct Debit in the System of Batch Clearing" (hereinafter Rules), approved by the ruling of the Board of the National Bank of the Kyrgyz Republic dated July 30, 2008 No. 30/6 and registered in the Ministry of Justice of the Kyrgyz Republic on September 12, 2008, registration number 104-08.
   (As amended by rulings of the Board of the National Bank of the KR dated March 30, 2011 No. 20/6, June 14, 2017 No. 2017-P-19/24-8)
   1.7. The functions of the Clearing Center (hereinafter - CC), defined by this Instruction, are performed by the National Bank of the Kyrgyz Republic (hereinafter - National Bank).
   (As amended by the ruling of the Board of the National Bank of the KR dated March 30, 2011 No. 20/6)

2. Terms and Definitions
   2.1. The terms and definitions used in this Instruction correspond to those provided in the Regulation "On Non-Cash Settlements in the Kyrgyz Republic", approved by the ruling of the Government of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic No. 420/21/4 dated September 9, 2005 (hereinafter - the Regulation on Non-Cash Settlements) and the Regulation on SBC.
   2.2. Additionally, the following terms and definitions are used in this Instruction:
   Automated Workstations of the CC (hereinafter - AWSCC) - a hardware and software complex designed to perform administration, system monitoring, and access rights management tasks for authorized (registered and having specific access rights in the System) personnel of the Clearing Center.
   (Paragraph lost force in accordance with rulings of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8) (Paragraph lost force in accordance with the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS)) (Paragraph lost force in accordance with the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8) (Paragraph lost force in accordance with the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8) System Request - electronically formatted information formed by a System participant in accordance with the Rules for Filling Out Formats and transmitted to the System to obtain data on payments (status of sent batches, net positions, etc.). Communication Channel - a telecommunications system designed for transmitting electronic payment document (EPD) batches and messages between participants and their clients, participants and the CC, and between the CC and the Gross Settlement Real-Time System (hereinafter - GSRTS) in real-time mode. (Paragraph lost force in accordance with the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8) (Paragraph lost force in accordance with the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8) (Paragraph lost force in accordance with the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8) System Response - electronically formatted information formed by the System in accordance with the Rules for Filling Out Formats and transmitted to a participant in response to received requests and EPD batches. Rejected Payment Document - a payment document from which the payee refused acceptance due to incorrect client name, incorrectly specified account, insufficient funds in the client's account, or absence of a direct debit agreement. Primary Payment Document - a payment document formed and transmitted by a client to a System participant in paper form or electronic representation (hereinafter referred to as an electronic payment document or electronic table). (Paragraph lost force in accordance with the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8) Service Bureau - a hardware and software complex installed in the Unified Service Center of the National Bank, designed for forming, transmitting to the System, and receiving EPD batches and messages by participants who do not have an automated participant workstation or direct connection to the System. System Message (hereinafter referred to as a message) - represents a system response to a corresponding request or information sent by the System without a participant's request. (Paragraph lost force in accordance with the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8) (Paragraph lost force in accordance with the ruling of the Board of the
   National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8) Electronic Table - electronic payment information (regarding salary payments, pensions, insurance premium payments, budget and utility payments, etc.), formatted in accordance with the Rules for Filling Out Formats and transmitted to a System participant by a sub-participant in accordance with the contract between the sub-participant and the System participant. Payment Disclosure - mandatory formatting of an EPD for each individual payment, grouped by similar characteristics (tax payments, utility payments, salary projects, etc.) into a single batch, with all EPD fields filled, including sub-account and personal account fields. (As amended by rulings of the Board of the National Bank of the KR dated December 12, 2007 No. 53/6, June 27, 2008 No. 25/12, December 10, 2008 No. 45/7, March 30, 2011 No. 20/6, June 14, 2017 No. 2017-P-19/24-8)

3. Preparation by Client of Primary Payment Documents and Transmission to the Sending Bank
   3.1. (Lost force in accordance with the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8)
   3.2. The primary payment document in paper or electronic form is formed by the client and transmitted to the sender in accordance with the contract conditions between the client and the sender.
   (As amended by the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8)
   3.3. The electronic table with payment information is formed by the sub-participant, signed electronically by responsible persons or encrypted using special means, and transmitted to the sender via a communication channel or on any medium in accordance with the contract conditions between the sub-participant and the sender.

4. Acceptance and Processing of Primary Payment Documents in the Sending Bank
   4.1. The sender accepts a paper payment document from a client in at least two copies. One copy of the paper payment document remains with the sender, and the other copy is returned to the client with an acceptance mark for execution.
   (As amended by rulings of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8, November 24, 2021 No. 2021-P-14/64-6-(PS)))
   4.2. For "salary" projects, utility payments, and budget payments, the sender verifies the correctness and completeness of all fields in the primary payment document, including sub-account and personal account fields, in accordance with the Instruction on the Procedure for Filling Out Payment Documents, approved by the ruling of the Board of the National Bank of the Kyrgyz Republic dated July 25, 2007 No. 36/5 and registered in the Ministry of Justice of the Kyrgyz Republic on September 3, 2007, registration number 82-07, for full payment disclosure in the SBC.
   (As amended by rulings of the Board of the National Bank of the KR dated December 12, 2007 No. 53/6, March 30, 2011 No. 20/6, June 14, 2017 No. 2017-P-19/24-8)
   4.3. If the exchange of payment documents between the client and the sender is carried out in electronic form, the sender confirms receipt of the payment document to the client in accordance with the contract conditions between the sender and the client, as well as the sender's internal regulatory documents and procedures.
   (As amended by the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS))
   4.4. If errors are found in the payment document, the sender returns it to the client indicating the reason for return in accordance with the sender's internal regulatory documents and procedures.
   (As amended by the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS))

5. Preparation by Sending Bank of EPD Batches and Messages and Transmission to the System
   5.1. The sender prepares EPD batches and messages in accordance with the Rules for Filling Out Formats. For utility, budget, and salary payments, the sender forms an EPD for each payer.
   (As amended by rulings of the Board of the National Bank of the KR dated December 12, 2007 No. 53/6, March 30, 2011 No. 20/6, June 14, 2017 No. 2017-P-19/24-8, November 24, 2021 No. 2021-P-14/64-6-(PS))
   5.2. After preparing the EPD batch or messages, the sender signs them with an electronic signature of authorized users and transmits them to the System via communication channels.
   (As amended by the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS))
   5.3. The sender transmits EPD batches to the System in accordance with the clearing day schedule. The number of EPD batches transmitted by the sender during this period is not limited.
   (As amended by the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS)) .
   5.4. If unable to form EPD batches and messages, the sender may apply to the CC for information input from primary payment documents and batch/message formation using the Service Bureau. Services for forming and transmitting batches are reflected in contractual relations between the CC and System participants.
   (As amended by the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS))
   5.5. In addition to Service Bureau services, EPD batches and messages may be transmitted to the System using communication channels of one of the participants having a direct connection to the System. The sender's relations for transmitting EPD batches and messages through a participant with direct connection are reflected in corresponding contractual relations between the CC and its participants.
   (As amended by the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS))
   5.6. The number of payments in EPD batches transmitted to the CC must correspond to the number of primary payment documents (on paper or in electronic form), consisting of the number of payment documents accepted by the sender from clients and the number of the sender's own payments.
   .(As amended by rulings of the Board of the National Bank of the KR dated December 12, 2007 No. 53/6, November 24, 2021 No. 2021-P-14/64-6-(PS))

6. Procedure for Processing EPD Batches and Messages
   6.1. Clearing Day Schedule
   6.1.1. Processing of EPD batches and messages is carried out in accordance with the clearing day schedule, which consists of one clearing session and is divided into the following periods:
   | Processing Period Name | Start/End Time | Duration |
   |---|---|---|
   | Opening of Clearing Day | 8:30 – 8:45 | 15 minutes |
   | Acceptance and Processing of EPD Batches and Messages | 8:45 – 13:30 | 4 hours 45 minutes |
   | Acceptance and Processing of Rejected Payments | 13:30 – 13:50 | 20 minutes |
   | Pre-clearing Period | 13:50 – 14:10 | 20 minutes |
   | Clearing Period | 14:10 – 14:20 | 10 minutes |
   | Final Settlement Period | 14:20 – 14:30 | 10 minutes |
   | Closing of Clearing Day | 14:30 – 15:00 | 30 minutes |

In accordance with the Regulation on SBC, multiple clearing sessions may be conducted within a clearing day. If necessary to change the clearing day schedule (number of clearing sessions and their periods), an appropriate ruling of the Board of the National Bank is adopted.
6.1.2. A System participant bears responsibility for complying with the operating schedule in accordance with National Bank regulatory legal acts.
6.1.3. Extension of the clearing day schedule is possible only upon a participant's application, accompanied by an official letter stating the reasons for operational day delays, signed by the head of the participant. In this case, the participant's clients (legal entities, individuals, budget organizations) resolve all arising issues with their servicing participant in accordance with concluded contracts and cannot directly apply to the CC. Responsibility and control for complying with this requirement rest with the participant.
6.1.4. If a participant does not operate on certain working days or weekends (holidays) declared as working by the Cabinet of Ministers of the Kyrgyz Republic, the participant must submit a letter to the CC signed by its head 3-5 days in advance, with mandatory notification of all SBC participants, including the Unified Interbank Processing Center (hereinafter – UIPC). In this case, a "Participant Holiday Day" option is set in the System for the participant, during which all payments to/from the participant, including card payments, are rejected by the System.
(As amended by rulings of the Board of the National Bank of the KR dated January 30, 2008 No. 5/1, November 24, 2021 No. 2021-P-14/64-6-(PS)))
6.2. Clearing Day Opening Period
6.2.1. The CC conducts System preparation for a new clearing session (installation, parameter configuration, and System readiness for operation start).
6.2.2. Settlement limits for participants are automatically set in the System.
(As amended by rulings of the Board of the National Bank of the KR dated September 30, 2009 No. 39/8, November 24, 2021 No. 2021-P-14/64-6-(PS)))
6.2.3. The System transmits a message to participants regarding the opening of the clearing day and settlement limit installation.
(As amended by the ruling of the Board of the National Bank of the KR dated September 30, 2009 No. 39/8)
6.2.4. The value of the installed settlement limit(s) for participant(s) may change to reserve value(s) based on information from the GSRTS. System participants receive online information about changes in settlement limits or reserves without requesting the System. Preliminary net positions of participants are calculated within the sum of settlement limits or reserves.
(As amended by the ruling of the Board of the National Bank of the KR dated September 30, 2009 No. 39/8)
6.3. Period for Acceptance and Processing of EPD Batches and Messages in the System
6.3.1. The CC accepts EPD batches and messages from senders, verifies batches for correct electronic signature and compliance with established formats. Based on verification of each batch, the System forms an acceptance message reflecting the date and time of batch acceptance and processing. For each batch, a status message is sent indicating the amount and total number of payments accepted and rejected by the System. Messages are electronically signed by the System and transmitted to the sender via communication channels.
(As amended by the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS))
6.3.2. The CC may accept net position batches from the UIPC. Based on verification of each batch, the System forms an acceptance message reflecting the date and time of batch acceptance and processing. For each individual batch, a status message is sent indicating the amount. Messages are electronically signed by the System and transmitted to the UIPC via established communication channels. Simultaneously, System participants whose net positions were transferred by the UIPC receive a message with the amount, acceptance time, and processing time. If a participant's current net debit position (hereinafter – CNDP) exceeds the established settlement limit/reserve, batches of net positions from all participants are accepted into the System with a "Inactive" status.
(As amended by the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS))
6.3.3. If electronic signature authentication of a batch received from the sender is impossible, or errors are found in the batch or individual payment preventing acceptance for processing, a corresponding message is formed indicating the errors. The message is electronically signed by the System and transmitted to the sender via corresponding communication channels. After receiving a message about batch or payment rejection, within the established clearing session schedule, the sender may create and send a corrected batch with a new batch and payment identifier.
(As amended by the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS))
6.3.4. Batches of payments accepted for execution are processed in accordance with each participant's status established in the System. Payment processing rules according to participant status and position are provided in Appendix 1 (p.1) to this Instruction.
(As amended by the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8)
6.3.5. Credit payment batches with a future settlement date are accepted no more than five clearing days before the settlement date.
6.3.6. As payments with future settlement dates are accepted, preliminary net positions of participants for the settlement date are calculated.
6.3.7. As credit payments with a settlement date equal to the current date are accepted (including payments accepted on previous dates), the CNDP of participants is calculated. For each debit CNDP, an check is performed for exceeding the established settlement limit or reserve. Rules for checking debit net position against exceeding LNDP are provided in Appendix 1 (p.2) to this Instruction.
(As amended by the ruling of the Board of the National Bank of the KR dated September 30, 2009 No. 39/8)
6.3.8. (Lost force in accordance with the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8)
6.3.9. (Lost force in accordance with the ruling of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8)
6.3.10. If errors are found, the sender may annul (recall) a batch or individual payment previously transmitted to the System. If the annulled payment was previously included in CNDP calculation, the sender forms an annulment message, the System assigns it "Annulled" status, recalculates participants' CNDP excluding this payment, and transmits the annulment message to the sender. If the payment was not previously included in CNDP calculation (i.e., had "Inactive" status), the System assigns it "Annulled" status and transmits the annulment message to the sender.
6.3.11. The payee may return funds to the sender in case of erroneously credited funds from credit operations. This operation is intended for returning funds obtained by a participant due to an erroneously specified client account, in case of client account blocking or closure.
6.3.12. Information on payment status, net positions, and settlement limit is provided to each participant in real-time mode, as well as upon request throughout the entire period of acceptance and processing of EPD batches and messages. The participant is obligated to monitor the provided System information and timely reserve part of funds in their correspondent account at an amount necessary for conducting final settlement of the debit net position upon completion of the clearing session in the System.
6.3.13. Upon completion of the acceptance and processing period for EPD batches and messages, payment documents are no longer accepted into the System.
(As amended by rulings of the Board of the National Bank of the KR dated June 14, 2017 No. 2017-P-19/24-8, November 24, 2021 No. 2021-P-14/64-6-(PS))
6.4. Period for Acceptance and Processing of Rejected Payments
6.4.1. During the period for acceptance and processing of rejected payments, EPD batch acceptance is suspended.
6.4.2. At the beginning of this period, the CC forms preliminary outgoing payment batches for payees. Outgoing batches contain payments included in CNDP calculation. Payment batches with "Inactive" status due to exceeding settlement limit/reserve and payment batches with future settlement dates are not included in outgoing batches. Each outgoing batch is electronically signed by the System and distributed to payees via communication channels.
6.4.3. After receiving a preliminary outgoing batch, the payee may refuse to accept the payment during this period due to incorrect details and form a rejected payment.
6.4.4. After receiving the rejected payment, the CC transmits messages about its exclusion to the sender and payee, as well as recalculates participants' CNDP taking into account the rejected payment.
6.4.5. Reserves are established for participants in the System based on received messages from the GSRTS.
6.4.6. Upon completion of the period, acceptance of rejected payments ceases.
(As amended by the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS))
6.5. Pre-clearing Period
6.5.1. During the pre-clearing period, the System does not accept EPD batches and messages.
6.5.2. (Lost in accordance with the ruling of the Board of the National Bank of the KR dated November 24, 2021 No. 2021-P-14/64-6-(PS))
6.5.3. The System checks participants' CNDP for compliance with established reserves and provides participants with information on batches included in CNDP calculation.
6.5.4. If any participant exceeds their reserve, the System proce