On Payment Processing Timeframes in the Kyrgyz Republic's Payment System and Liability for Violation of Such Timeframes

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Date Created: 2009-08-05

DECREE
GOVERNMENT NATIONAL BANK
OF THE KYRGYZ REPUBLIC OF THE KYRGYZ REPUBLIC

dated March 11, 2004 No. 144/1/6

On Establishing Payment Processing Timeframes in the Payment System of the Kyrgyz Republic and on Liability for Violation of Such Timeframes

In connection with the implementation of the interbank electronic payment system, for the purpose of streamlining and accelerating the processing of payments and settlements, as well as strengthening liability for violation of payment processing timeframes, the Government of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic decree:

1. Establish the following payment processing timeframes in the national currency of the Kyrgyz Republic:

• between banks within the Kyrgyz Republic - no more than one banking day;
• between bank clients within the Kyrgyz Republic - no more than two banking days;
• for payments using plastic cards and payments made by depositing cash funds for subsequent transfer – no more than two banking days.

2. Payment processing timeframes shall be calculated from the date of debit by the paying bank from the client's account based on an accepted payment document, up to and including the date of credit by the receiving bank to the client's account.

3. A payment document shall be considered valid and accepted for processing only within the day specified as its issuance date, unless otherwise provided by the legislation of the Kyrgyz Republic and/or bilateral agreements between banks and clients.

4. It is established that in case of untimely crediting of funds to client accounts, clients have the right to demand banks pay interest for non-fulfillment of monetary obligations at a rate equal to three times the prevailing discount rate of the National Bank of the Kyrgyz Republic on the overdue payment amount for each day of delay, unless a higher rate is otherwise provided by the legislation of the Kyrgyz Republic or bilateral agreements between banks and clients.

5. It is recommended that banks and their branches, when concluding contracts with organizations for the provision of communication and electricity services, include provisions holding service-providing organizations liable for uninterrupted supply of such services in accordance with Article 14 of the Law of the Kyrgyz Republic "On Electric Power Industry".

6. Commercial banks, the National Automated Clearing House, and other payment system participants shall take necessary measures to process payments within the established timeframes.

7. Declare the following invalid:

• the Decree of the Government and National Bank of the Kyrgyz Republic dated June 22, 1998 No. 370 "On Measures to Ensure Efficient Operation of the Payment System of the Kyrgyz Republic and Increase Bank Liability for Timely Processing of Payments";
• the Decree of the Government and National Bank of the Kyrgyz Republic dated November 2, 2001 No. 686 "On Amendments to the Decree of the Government and National Bank of the Kyrgyz Republic dated June 22, 1998 No. 370 "On Measures to Ensure Efficient Operation of the Payment System of the Kyrgyz Republic and Increase Bank Liability for Timely Processing of Payments".

8. This Decree shall enter into force ten days after the date of its official publication in the mass media.

Prime Minister Chairman of the Kyrgyz Republic of the National Bank of the Kyrgyz Republic

N. Tanayev U. Sarbanov

Draft joint decree countersigned by:
Zhumaliev K. M.
Otorbayev D. K.

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