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.