Resolution of the Board

of the National Bank

of the Kyrgyz Republic

of 10 February 2021

No. 2021-П-14/6-1-(ПС)

On Amendments

to the Resolution of the Board of the National Bank of the Kyrgyz Republic

«On Approval of the Policy on Supervision (Oversight) of the Payment System

of the Kyrgyz Republic» of 15 July 2015 No. 38/4

In accordance with Articles 20 and 68 of the Law of the Kyrgyz Republic «On the National Bank of the Kyrgyz Republic, Banks and Banking Activities», the Board of the National Bank of the Kyrgyz Republic resolves:

• 1. To introduce amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic «On Approval of the Policy on Supervision (Oversight) of the Payment System of the Kyrgyz Republic» of 15 July 2015 No. 38/4 (attached).
• 2. This Resolution shall enter into force on the day of its official publication.
• 3. To the Legal Department:

  • to publish this Resolution on the official website of the National Bank of the Kyrgyz Republic;

  • after official publication, to send this Resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Normative Legal Acts of the Kyrgyz Republic.

• 4. To the Payment Systems Department: to bring this Resolution to the attention of commercial banks, payment system operators and payment organizations.
• 5. To the State Language Development and Document Management Division: to bring this Resolution to the attention of the relevant structural subdivisions, regional departments, and the representative office of the National Bank of the Kyrgyz Republic in Batken Oblast.
• 6. To entrust control over the execution of this Resolution to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Payment Systems Department.

Chairman T. Abdygulov

Annex
to the Resolution of the Board of the National Bank of the Kyrgyz Republic of 10 February 2021 No. 2021-П-14/6-1-(ПС)

Amendments to the Resolution of the Board

of the National Bank of the Kyrgyz Republic

«On Approval of the Policy on Supervision (Oversight) of the Payment System of the Kyrgyz Republic» of 15 July 2015 No. 38/4

To introduce the following amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic «On Approval of the Policy on Supervision (Oversight) of the Payment System of the Kyrgyz Republic» of 15 July 2015 No. 38/4: in the Policy on Supervision (Oversight) of the Payment System of the Kyrgyz Republic approved by the above-mentioned Resolution:

• in paragraph 13:

  • in the first subparagraph, replace the word «three» with the word «two»;

  • to restate the second subparagraph as follows:

  • «- the system processes at least 75% of the number and/or volume of payments/transfers»;

  • to restate the third subparagraph as follows:

  • «- the system, in the event of financial risks and/or non-financial risks, operational or technical failures, is capable of causing systemic disruptions for other participants and payment systems («domino effect»);»;

  • to restate the fourth subparagraph as follows:

  • «- the system is used for settlements on transactions in financial markets;»;

• to restate paragraph 14 as follows:

«14. A payment system is recognized as significant if at least one of the following criteria applies to it:

• the system processes at least 35% of the number and/or volume of payments by type of payment systems during the reporting half-year;

• at least 50% of commercial banks of the Kyrgyz Republic are connected to the system;

or both of the following criteria:

• the degree of coverage of the peripheral and agency network of the system is at least 35% of the number of all peripheral devices and agents in the Kyrgyz Republic during the reporting half-year;

• the system processes at least 10% of the volume and/or number of all budget payments of the Kyrgyz Republic during the reporting half-year.»;

  • to restate paragraph 15-1 as follows:

«15-1. By status, a legal entity is recognized as a provider of critical services if at least two of the following criteria apply to it:

• processes/routes at least 25% of the number and/or volume of payments/transfers in national/foreign currency during the reporting half-year;

• covers more than 25% of the number of the entire peripheral and agency network in the Kyrgyz Republic;

• interconnectedness with participants of the banking system of the Kyrgyz Republic – serves more than 50% of commercial banks of the Kyrgyz Republic;

• routes more than 25% of the number and/or volume of transactions of a systemically important or significant payment system.»;

  • in the first subparagraph of subparagraph «b» of paragraph 16, replace the words «systemically important, significant and new payment systems» with the words «systemically important and significant payment systems»;

  • to supplement the Policy with paragraph 16-1 as follows:

«16-1. As part of monitoring, information is also collected on emerging new products/systems, as well as an analysis of these products/systems for risks and compliance with the requirements of the legislation of the Kyrgyz Republic. Participants of payment systems must, at the stage of improving the existing system, as well as introducing new products/systems, inform the National Bank in advance with the provision of detailed information on the proposed changes/additions to the system or the product/system being developed. If there are comments on the product/system, the National Bank, within 30 calendar days, sends its comments/recommendations to the participant of the payment system.»;

• to restate paragraph 17 as follows:

«17. The National Bank assesses the compliance of the functioning of systemically important and significant payment systems with the requirements of the legislation of the Kyrgyz Republic, recommendations of the National Bank and international standards in the field of payment systems.»;

• to restate paragraph 18 as follows:

«18. The assessment of the functioning of payment systems is carried out on the basis of quantitative and qualitative data obtained as a result of monitoring, the results of the operator's self-assessment (assessment of its own system), taking into account generally accepted international practice according to the methodology for assessing the functioning of payment systems for compliance with the above standards.»;

• in the first paragraph of point 20, the words «separately operating and new» shall be excluded;

• in the first paragraph of point 22, the words «operating and new» shall be excluded;

• in the chapter «II. Assessment by the operator (participants) of the payment system» of Appendix 2:

  • point 2 shall be recognized as no longer in force;

  • in point 3, the word «, new» shall be excluded;

  • in point 4, the words «fulfillment of requirements» shall be replaced by the words «for compliance with requirements»;

  • point 5 shall be recognized as no longer in force.