Instructions No. 9 of 2024 Regarding the National E-SADAD Bill Presentation and Payment System - Banks

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سلطة النقد الفلسطينية
PALESTINE MONETARY AUTHORITY

Instructions No. (9) of 2024
Regarding the National E-SADAD Bill Presentation and Payment System - Banks

Based on the provisions of Law No. (41) of 2022 concerning National Payments, particularly Articles (7 and 18) thereof, And in light of what the Board of Directors of the Palestine Monetary Authority approved at its meeting No. (277) dated 2024/07/24, And according to the powers delegated to us, And in pursuit of the public interest, We have issued the following Instructions:

Article (1)
Definitions

The words and phrases appearing in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

System	National E-SADAD Bill Presentation and Payment System.
System Operator	The Palestine Monetary Authority or a person licensed by the Authority to operate the System.
Member	Banks and payment service companies operating in Palestine.
Subscriber	The biller subscribed to the System.
Customer	A Member's client who settles a bill through the System.
Settlement Bank	The bank designated by the Subscriber or payment service company for recording or settling net financial receivables of either party.
Bill	The financial claim issued by the Subscriber.
Settled Bill	A financial claim issued by the Subscriber and settled in full or partially through the System.
Commission	The value or percentage charged on a settled bill or prepaid charge, which is deducted from the Subscriber.
Interoperability and Integration Standards	A set of rules and guidelines aimed at organizing and improving how the payment system connects and integrates between the Operator and the Member.
Electronic Document	Any electronically stored content, whether linear, audio, visual, auditory, or graphic.
Electronic Records	A set of information that collectively describes a status relating to a natural or legal person, or payment services, which are created, sent, delivered, or stored by electronic means.
Electronic Notifications	All information issued by the System to Members, Subscribers, and Customers.
BARQ System	The Palestine Monetary Authority's Real-Time Gross Settlement (RTGS) system.

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Article (2)
Objective and Scope of Application

1. The provisions of these Instructions aim to regulate and define membership requirements in the System.
2. The provisions of these Instructions apply to the System Operator and all Members in the System.

Article (3)
Operation of the System

The Palestine Payment Services Company operates the System.

Article (4)
Membership

Membership in the System is mandatory for all banks and licensed payment service companies operating in Palestine.

Article (5)
Exclusivity of Service Provision

The E-SADAD System is considered exclusive for the purpose of providing bill presentation and payment services, as well as prepaid charges. Payment channels and tools approved by the Authority may be used for executing payments through the System.

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Article (6)
Member Obligations

The Member must comply with the following:

1. Include all System services clearly and separately on the electronic application interfaces used.

2. Display the classification and names of Subscriber sectors, their services, and dedicated information as stated in the interoperability message issued by the System.

3. Conduct periodic internal audits to ensure all Subscriber services are provided within the dedicated System interface.

4. The Member must enable the Customer to:
   a. Register or cancel subscription numbers for biller services. b. Apply verification and authentication methods (e.g., PIN, OTP) and notify customers via SMS about executed transactions through approved electronic channels immediately upon completion.
   c. Inquire about bills and fees issued by Subscribers and settle them, including public and private sectors.
   d. Inquire about prepaid payments. e. View the exchange rate if the settlement currency differs from the bill or fee currency.

5. The Member must obtain prior written approval from the Authority if it needs to temporarily suspend its network connection or operations with the System, provided that the Member:
   a. Specifies the reasons and justifications. b. Specifies the implementation date and the service suspension period.
   c. Notifies customers through appropriate means regarding this measure and the expected timeframe for resuming service.

6. In case of sudden or extraordinary suspension of the Member's network connection or operations with the System, the Member must immediately notify the Authority and the System Operator. After the event concludes, they must be provided with the reasons, handling mechanism, and measures taken to prevent recurrence.

7. The Member must determine and calculate the exchange rate in the conversion process when executing a payment order on behalf of the Customer, if the payment currency differs from the bill currency, provided that applicable exchange rates on payment channels and tools are observed.

8. Payment service companies must comply with the following:
   a. Contract with a bank that is a member of the BARQ system to serve as their Settlement Bank and provide the Authority with the agreement. b. Notify the Authority in writing at least (30) days prior to suspending or terminating the agreement mentioned in paragraph (a).
   c. Obtain an undertaking from the Settlement Bank regarding the unconditional and irrevocable delegation to the Authority of its power to restrict the company's obligations in the System resulting from settlements on its account at the Authority.

Article (7)
Working Hours

1. The Member must ensure System services are available around the clock, every day of the week, throughout all days of the year.
2. The clearing session and financial settlement are conducted on official working days at 11:30 AM for all successfully completed payments before the session deadline, and on the first working day following official holidays. The Authority may determine another time as deemed appropriate, provided Members are notified.
3. The Authority may suspend System operations as deemed appropriate, provided Members are notified.

Article (8)
Payment Caps

1. The Member must determine the caps and limits for payments allowed through the System and re-evaluate these caps in accordance with risks, operational events, customer volume, and classification to limit fraud. The following minimum considerations must be observed:
   a. Type of Subscriber service (e.g., utilities, taxes, university fees). b. Payment mechanism for the service (prepaid, bill payment).
   c. Nature of the Customer (individual, corporate).
   d. Number of payment executions for a single service per day. e. Enhancing customer experience and encouraging System usage without conflicting with the Member's approved risk management policy.

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2. The Authority may determine payment caps allowed through the System according to service type as deemed appropriate, provided Members are notified.

Article (9)
Collection Right

The collection and registration of settled bill amounts in favor of Subscribers occur on the same working day if settlement is executed before the clearing session deadline; otherwise, it occurs on the next working day.

Article (10)
Collected Commissions

1. Bill payment and prepaid charge commissions through the System are in accordance with Annex No. (1).
2. Commissions are deducted from the Subscriber's account and credited to the System Operator and the paying Member.
3. The Authority deducts commissions from the Subscriber's Settlement Bank account and records them within multi-party net balances, by debiting the Member's settlement account and crediting the System Operator's account and the Member's settlement account.
4. The System Operator collects operational fees equal to half of the commission deducted from the Subscriber's account.
5. The Member is prohibited from collecting any commissions from the Customer for using the System.

Article (11)
Clearing Results

1. Financial positions (debit and credit) of Members are determined based on multi-party net financial positions.
2. Clearing results are settled in the BARQ system according to the principle of settling all payments or rejecting all payments based on multi-party net settlement.
3. The Member must provide sufficient liquidity to execute clearing results and fund any deficits in their designated accounts within the settlement system, according to the operational schedule determined by the Authority.
4. The Authority is expressly authorized to debit and credit the Member's settlement account in the settlement system.

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Article (12)
Member Infrastructure

The Member must comply with the following requirements:

1. Appropriate technical environment and infrastructure for connection and integration with the System.
2. Execution of operations in accordance with the Operator's approved connection and integration requirements.
3. Passing the Operator's approved pilot testing.
4. Taking all measures to maintain System service availability at no less than 99.9%.
5. Maintaining infrastructure, connection mechanisms, and systems necessary to provide System services.
6. Taking all necessary measures and procedures to protect data, information security, and control cyber and operational risks.
7. Bearing any costs or obligations arising from their membership in the System.

Article (13)
System Operator Obligations

The System Operator is subject to the supervision and oversight of the Authority and must comply with the following:

1. Manage, operate, and provide necessary support and training to enable banks, payment service companies, and billers to join and subscribe to the System.
2. Take all necessary measures and procedures to protect data, information security, and control cyber and operational risks.
3. Perform periodic maintenance and system updates and provide technical support to address related events and complaints.
4. Retain System data in accordance with prevailing legislative and regulatory frameworks in Palestine.
5. Maintain service quality provided through the System, develop it, and define connection and integration requirements with the System.
6. Notify the Authority immediately upon any partial or complete suspension of System services.
7. Provide the Authority with all required data, information, and reports.

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Article (14)
System Records

Electronic documents and records available in the System are considered approved, reliable, and final unless proven otherwise.

Article (15)
Electronic Reconciliation

The Member must enhance daily reconciliation procedures, including:

1. Ensuring receipt of payment enhancement notifications issued by the System before executing final deductions from the paying Customer's account.
2. Using System records for reconciliation and verifying the status of pending transactions.
3. Reconciling operations executed by payment service companies and Subscribers, if the Settlement Bank is involved.
4. Reversing pending transactions from the intermediary account to the Customer's account if successful execution is not confirmed within a maximum of one working day.

Article (16)
Protection of Customer Rights

The Member must comply with Authority instructions regarding customer protection and provide at minimum:

1. Clear disclosure of communication channels for receiving complaints, including applications and internet banking.
2. Sufficient information in payment notifications, including at minimum the settled service, value, and execution time.
3. Informational materials about the System, including access mechanisms and a frequently asked questions (FAQ) list.
4. A list of registered Subscriber services and the specific tariff requirement for each service.
5. Use of the System's electronic reconciliation interface to process and respond to complaints within a maximum of one working day.
6. Notify the System Operator via email (Support@ppsc.ps) if any complaint remains unresolved.

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Article (17)
Technological Environment

The Member must comply with the Authority's requirements regarding technological environment, business continuity, and cybersecurity.

Article (18)
Membership Suspension

1. The Authority may suspend a Member's membership in the System if the Member fails to comply with these Instructions.
2. The Authority may suspend a Member's membership if it deems such action necessary to protect the System and the banking sector's interest.
3. In either of the cases mentioned in paragraphs (1) and (2), clearing results are included in calculating the settlement outcome for that session as deemed appropriate by the Authority.
4. Suspension of a Member's membership does not exempt them from obligations arising or that may arise due to their System membership during any period and without a specific date for such obligations.

Article (19)
Anti-Money Laundering and Counter-Terrorism Financing

The System Operator and the Member must comply with the provisions and requirements of the Anti-Money Laundering and Counter-Terrorism Financing Law, as well as the instructions and circulars issued thereunder.

Article (20)
Repeal of Conflicting Provisions

1. Instructions No. (09) of 2023 regarding the National Bill Presentation and Payment System, and Instructions No. (16) of 2023 amending these instructions issued for banks operating in Palestine, are repealed.
2. Instructions No. (03) of 2023 regarding the National Bill Presentation and Payment System, and Instructions No. (04) of 2023 amending these instructions issued for payment service companies operating in Palestine, are repealed.
3. All provisions conflicting with these Instructions are repealed.

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Article (21)
Implementation and Enforcement

All competent authorities must implement the provisions of these Instructions according to their respective jurisdictions, and they apply from the date of issuance.

Issued in Ramallah, on: 2024/08/04

Dr. Firas Malhem
Governor

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Annex No. (1) Collected Commissions:

Sector	Collected Commission
Academic Education (Universities & Institutes) and Private Education	Commissions Collected from the Subscriber; (200) Two Hundred Jordanian Fils per transaction.; (25) Twenty-Five Sannim per transaction.; (1) Sheqel per transaction.
Telecommunications and Internet	Bills:; (200) Two Hundred Jordanian Fils per transaction.; (25) Twenty-Five Sannim per transaction.; (1) Sheqel per transaction.; Prepaid charges:; (2%) up to a maximum of (4) Sheqel per prepaid transaction.
Utilities (Electricity, Water, Gas)	Bills:; (200) Two Hundred Jordanian Fils per transaction.; (25) Twenty-Five Sannim per transaction.; (1) Sheqel per transaction.; Prepaid charges:; Free for each prepaid transaction valued under (50) Sheqel.; (0.4%) up to a maximum of (4) Sheqel per prepaid transaction valued at or over (50) Sheqel.
Insurance Sector	(0.4%) up to a maximum of (4.5) Sheqel per transaction.; (0.4%) up to a maximum of (1) Dinar per transaction.; (0.4%) up to a maximum of (1.5) Dollars per transaction.
Municipalities Sector	(0.2%) up to a maximum of (4.5) Sheqel per transaction.; (0.2%) up to a maximum of (1) Dinar per transaction.; (0.2%) up to a maximum of (1.5) Dollars per transaction.
Other Activities and Services	(0.4%) up to a maximum of (4.5) Sheqel per transaction.; (0.4%) up to a maximum of (1) Dinar per transaction.; (0.4%) up to a maximum of (1.5) Dollars per transaction.