Resolution of the Board of the National Bank of the Kyrgyz Republic No. 20/6 of March 30, 2011 on Amendments to Resolution No. 38/11 on the Instruction on Payment Procedures in the System of Batch Clearing of Small Retail and Regular Payments

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of March 30, 2011 No. 20/6

On Amendments to the Resolution of the Board of the NBKR No. 38/11 of August 22, 2007 on the Instruction "On the Procedure for Conducting Payments in the System of Batch Clearing of Small Retail and Regular Payments in the Kyrgyz Republic", registered in the Ministry of Justice of the Kyrgyz Republic No. 88-07 of October 4, 2007

Having considered the amendments to the Resolution of the Board of the NBKR on the Instruction "On the Procedure for Conducting Payments in the System of Batch Clearing of Small Retail and Regular Payments in the Kyrgyz Republic" No. 38/11 of August 22, 2007, the Board of the National Bank of the Kyrgyz Republic

RESOLVES:

1. To make amendments to the Resolution

2. Of the Board of the National Bank of the Kyrgyz Republic on the Instruction "On the Procedure for Conducting Payments in the System of Batch Clearing of Small Retail and Regular Payments in the Kyrgyz Republic" No. 38/11 of August 22, 2007, registered in the Ministry of Justice of the Kyrgyz Republic No. 88-07 of October 4, 2007 (attached).

3. This Resolution shall enter into force upon the expiration of one month from the moment of official publication.

4. After official publication, the Legal Department shall send this Resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Regulatory Legal Acts of the Kyrgyz Republic.

5. The Banking Settlements Department shall bring this Resolution to the attention of commercial banks, CJSC MPC, regional departments, and the representative office of the National Bank of the Kyrgyz Republic in the Batken region.

6. Control over the implementation of this Resolution shall be entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic Z.M. Asankozhoeva.

Acting Chairman of the Board of the National Bank of the Kyrgyz Republic	B. Zheenbaeva

	Approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of March 30, 2011 No. 20/6

Make the following changes and additions to the "Instruction on the Procedure for Conducting Payments in the System of Batch Clearing of Small Retail and Regular Payments in the the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of August 22, 2007 No. 38/11, registered in the Ministry of Justice of the Kyrgyz Republic on October 4, 2007, registration number 88-07:

1. In paragraph 1.6, after the words "National Bank of the Kyrgyz Republic", add the words "(hereinafter - the National Bank)" and throughout the text replace "NBKR" with "National Bank".

2. Change the numbering of paragraph 1.6 to paragraph 1.7.

3. Redraft paragraph 1.6 as follows:

"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 - the Rules), approved by the Resolution of the Board of the National Bank of July 30, 2008 No. 30/6, registered in the Ministry of Justice of the Kyrgyz Republic on September 12, 2008, registration number 104-08".

4. Throughout the text of the document, correct the formulation "account in the gross system" to "account at the National Bank".

5. In paragraph 2.2, redraft the definition "Indirect System Participant" as follows:

"Indirect System Participant - a financial and credit institution, as well as the Central Treasury of the KR and the Social Fund of the KR, registered in the system, having a correspondent (current) account at the National Bank and a position in the system, but not having a direct connection with the system. Transmits/receives its EPD and message files in the system through the connection of one of the direct participants or through the Service Bureau".

6. In paragraph 2.2, redraft the definition "Direct System Participant" as follows:

"Direct System Participant - a financial and credit institution, as well as the Central Treasury of the KR, registered in the system, having a correspondent (current) account at the National Bank, positions in the system, hardware and software means providing a direct connection with the system and allowing to send EPD and message files directly to the system and receive response messages from it independently or through the Service Bureau".

7. In paragraph 2.2, redraft the definition "Payment Disclosure" as follows:

"Payment Disclosure - mandatory documentation of an EPD for each individual payment, combined into one payment based on similar features (tax payments, utility payments, salary project payments, etc.), with the completion of all fields of the EPD, including sub-account and account fields".

8. In paragraph 4.2, replace the words "payment order" with the words "primary payment document".

9. In paragraph 5.1, replace the words "forms payment orders" with the words "forms EPDs".

10. In paragraph 6.3.8, exclude the last sentence "The Rules for conducting payments by direct debit are set forth in Appendix 1 (para. 3) to this Instruction".

11. Exclude paragraphs 6.5.5, 6.7.3, with the corresponding renumbering of the remaining paragraphs.

12. In Appendix 1, replace the content of paragraph 1 with the following content:

"The status and position of a participant are established by authorized personnel of the CC based on resolutions of the Board of the National Bank or the Supervisory Committee of the National Bank on the introduction of special regimes: direct bank supervision, temporary management, conservation, special administration, license revocation, bankruptcy, voluntary liquidation.

The following participant statuses are defined in the system: 'Active', 'Suspended', 'Excluded' or 'To Be Deleted'.

The 'Active' status is established for a participant when no restrictions on conducting payments in the system have been introduced. With this status, the participant's payments, regardless of the purpose of the payment, are subject to full-functional processing and inclusion in the calculation of net positions.

The 'Suspended' status is established for a participant when restrictions on participation in the SBC are introduced by the resolution of the Board of the NBKR or the Supervisory Committee of the NBKR, and restrictions in the GSRKV are not introduced. With the 'Suspended' status of the participant, payments are processed as follows:

• new payments and messages are not accepted;

• payments accepted and included in the calculation of the net position are processed as with the 'Active' status;

• payments accepted but not included in the calculation of the net position are transferred to the 'Inactive' status until the participant's status changes to 'Active' or 'Excluded'.

The 'Excluded' status means the temporary exclusion of the participant from the system.

The 'To Be Deleted' status means that the participant is actually deleted from the system, but information about its previous activity is preserved in the archival database.

With the 'Excluded' or 'To Be Deleted' status of the participant, all its EPDs are automatically annulled, and new ones are not accepted.

When restrictions on participation are introduced in both the SBC and the GSRKV, restrictions on participant positions are established in the system. The position has one of the following states: open, closed, blocked for debit/credit.

'Open' - is established in the absence of restrictions and means full-functional processing of all EPDs, regardless of the purpose of the payment.

'Closed' - is established with a complete ban on sending and receiving payments in the system. In this case, the participant's payments are accepted with the 'Inactive' status and are not included in the calculation of the Net Position. If the position status has not changed by the 'Final Settlement' period, payments with the 'Inactive' status are rejected by the system with subsequent notification of the participant.

'Blocked for debit/credit' - is established when restrictions on outgoing/incoming payments of the participant are introduced. With this position, payments to/from the participant included in the calculation of the Net Position and payments received into the system after the blocking of positions take the payment status 'Inactive' and are processed as follows:

• the system recalculates the Net Positions of participants;

• new payments take the 'Inactive' status;

• upon unblocking positions for debit/credit, payments received into the system are included in the calculation of the Net Position in accordance with paragraph 2 of Appendix 1;

• if positions for debit/credit are not unblocked by the 'Final Settlement' period, payments with the 'Inactive' status are rejected by the system with subsequent notification of the participant".

13. In Appendix 1, exclude paragraph 3.