Resolution of the Board

of the National Bank

of the Kyrgyz Republic

dated 24 May 2023

No. 2023-P-14/34-3-(PS)

On Amendments

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

“On Approval of the Rules for Making Payments and Transfers Using Two-Dimensional Barcode Symbols (QR Code)”

dated 11 December 2019 No. 2019-P-14/62-5-(PS)

In order to increase the share of non-cash payments and settlements in the Kyrgyz Republic, expand and cover trade and service enterprises with two-dimensional barcode symbols (QR code) for accepting payments for goods and services in non-cash form using mobile applications of banks and payment system operators/payment organizations, guided by Articles 5, 9 and 64 of the Constitutional Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic”, 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 Rules for Making Payments and Transfers Using Two-Dimensional Barcode Symbols (QR Code)” (hereinafter – the Rules) dated 11 December 2019 No. 2019-P-14/62-5-(PS) (attached).

• 2. To recommend to commercial banks, as well as payment system operators/payment organizations and their agents that have mobile applications, to carry out, by 1 November 2024 and thereafter on an ongoing basis, a full-scale installation of QR codes in trade and service enterprises (hereinafter – TSE) of the Kyrgyz Republic:

  • 1) With a weekly increase (in %) of the total number of TSE with a minimum threshold value:

    • from 1 to 500 TSE – 10%, but not less than 7 TSE;

    • from 501 to 1000 TSE – 7%, but not less than 20 TSE;

    • from 1001 to 2000 TSE – 5%, but not less than 30 TSE;

    • from 2001 and above – 3%, but not less than 40 TSE.

  • 2) To determine the following ratio of QR codes in TSE in the regions of the Kyrgyz Republic as an additional qualitative indicator:

    • not less than 20% of the total number of TSE – for banks having a branch network in the regions of the Kyrgyz Republic (more than 20 branches), for payment system operators/payment organizations and their agents having a mobile application;

    • not less than 10% of the total number of TSE – for other banks.

• 3. To recommend to commercial banks, as well as payment system operators/payment organizations and their agents that have mobile applications:

  • 1) by 1 July 2023 to develop a plan for the implementation of the indicators of paragraph 2 of this resolution and submit it to the National Bank for monitoring its implementation;

  • 2) on a weekly basis to provide to the National Bank information on the implementation of paragraph 2 of this resolution;

  • 3) to provide the necessary consulting and technical assistance to TSE in terms of conducting training on the use of two-dimensional barcode symbols (QR code) for accepting and making payments for goods and services;

  • 4) to conduct, on a quarterly basis, an information campaign, including through mass media and social networks, for the population and TSE on payment methods using two-dimensional barcode symbols (QR code).

• 4. To the Legal Department:

  • from the day of receipt of the relevant documents, within 3 (three) working days, 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.

• 5. This resolution enters into force upon the expiration of 15 (fifteen days) from the day of official publication.

• 6. To the Payment Systems Department, within 3 (three) working days, to bring this resolution to the attention of commercial banks, payment organizations and payment system operators.

• 7. To the “Secretariat of the Board” Division, within 3 (three) working days, 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.

• 8. To entrust control over the implementation of this resolution to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Payment Systems Department.

Chairman K. Bokontaev

Annex
to the Resolution of the Board of the National Bank of the Kyrgyz Republic “24” May 2023 No. 2023-P-14/34-3-(PS)

Amendments

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

“On Approval of the “Rules for Making Payments and Transfers

Using Two-Dimensional Barcode Symbols (QR Code)”

dated 11 December 2019 No. 2019-P-14/62-5-(PS)

To introduce the following amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic “On Approval of the Rules for Making Payments and Transfers Using Two-Dimensional Barcode Symbols (QR Code)” dated 11 December 2019 No. 2019-P-14/62-5-(PS):

in the Rules for Making Payments and Transfers Using Two-Dimensional Barcode Symbols (QR Code), approved by the above-mentioned resolution:

• in paragraph 1, after the words “Rules for Making Payments”, to supplement with the words “and Transfers”;

• to supplement paragraph 5 with the ninth paragraph of the following content:

“Main Interaction Operator – the operator of the national payment system “Elkart”, registered by the National Bank and included in the register of interaction operators, ensuring inter-system interaction and a single payment space using a QR code, to which all interaction operators are connected/integrated.”;

• to restate paragraph 6.2. as follows:

“6.2. The Main Interaction Operator and interaction operators are prohibited from committing actions (establishing requirements in their operating rules) that contradict the antimonopoly legislation of the Kyrgyz Republic, aimed at preventing, restricting or eliminating competition and establishing an unjustified advantage over other participants of payment systems, including refusing connection/integration to other interaction operators. In the event of detection of facts of violation of these requirements, measures of influence will be applied to the main interaction operator and the interaction operator in accordance with the legislation of the Kyrgyz Republic.»;

• restate paragraph 7 as follows:

«7. Interaction operators must integrate and interact with each other and with the main interaction operator to ensure a single payment space for the payer, as well as the execution of a payment using a QR code and the receipt of funds from the payer to the final recipient. At the same time, new interaction operators must ensure integration with the main interaction operator in accordance with the technical requirements of the main interaction operator within 3 (three) months from the day of their inclusion in the register of interaction operators at the National Bank. The integration of a new interaction operator with the main interaction operator automatically ensures its access to the other interaction operators.»;

• supplement with paragraphs 7-1. and 7-2. as follows:

«7-1. A new interaction operator, within 10 (ten) business days from the day of completion of integration with the main interaction operator, shall provide to the National Bank the Operating Rules for conducting settlements for payments using a QR code (hereinafter – operating rules), the technical regulation and the agreement with the main interaction operator. The agreement with the main interaction operator must comply with the requirements of paragraph 23.1 of these Rules.

7-2. The operating rules and technical regulation provided to the National Bank and containing more than one sheet must be described sheet by sheet, bound, numbered, signed and certified by the signature of the head and the seal.»;

• in paragraph 13, replace the words «3 (three)» with the words «10 (ten)»;

• supplement with paragraphs 13-1. and 13-2. as follows:

«13-1. The payment system operator must agree on the scheme of inter-system integration and interaction of payment systems, interaction protocols, as well as the timelines for integration work with the main interaction operator before submitting to the National Bank a notification on the performance of the functions of an interaction operator to ensure timely fulfillment of paragraph 7 of these Rules. The checklist on compliance with the requirements of paragraph 12 of these Rules must be accompanied by a letter from the applicant/letters from the interaction operator(s)/a copy of the preliminary agreement on timelines and schemes of interaction with the main interaction operator.

13-2. Documents provided to the National Bank in accordance with these Rules and containing more than one sheet must be described sheet by sheet, bound, numbered, signed and certified by the signature of the head and the seal of the applicant. At the request of the National Bank, individual documents may be provided in electronic form.»;

• supplement with paragraph 14-1. as follows:

«14-1. The National Bank, within the established period, shall send to the interaction operator a corresponding written notification of its inclusion in the register of interaction operators, indicating the assigned registration number. The procedure for maintaining the register of interaction operators is established by the National Bank.»;

• in paragraph 15, replace the words «paragraph 12» with the words «paragraphs 7 and 12»;

• supplement with paragraphs 15-1. and 15-2. as follows:

«15-1. In the event of exclusion of an interaction operator from the register of interaction operators, the documents provided to the National Bank and their copies are not returned to the applicant.

15-2. Re-submission of an application and documents for the performance of the functions of an interaction operator is allowed upon expiration of 6 (six) months from the day of exclusion from the register of interaction operators or from the day of expiration of the periods specified in paragraph 7 of these Rules (in the event of violation of these periods).»;

• in paragraph 16:

  • exclude the words «on conducting settlements for payments using a QR code (hereinafter – operating rules)»;

  • supplement with a second paragraph as follows:

«The interaction operator shall provide these documents to the National Bank in accordance with the requirements of paragraph 7-1 of these Rules.»;

• restate the second paragraph of paragraph 18 as follows:

«- the rights, obligations and responsibility of the parties when conducting payments and settlements using a QR code, including the powers of the interaction operator with respect to reserving funds in the correspondent account of a payment system participant on the part of the interaction operator and confirming to the National Bank the reservation in the Gross settlement system in real time on the part of the payment system participant;»;

• restate paragraph 23 as follows:

«23. When an interaction operator connects to the main interaction operator, their integration and interaction with other interaction operators are carried out in accordance with the terms of the agreement concluded between them.»;

• supplement with paragraph 23-1. as follows:

«23-1. The agreement between the interaction operator and the main interaction operator must contain the following mandatory conditions:

• the rights, obligations and responsibility of the parties during interaction and inter-system integration, routing/conducting payments and mutual settlements using a QR code, access to other interaction operators to ensure inter-system integration (interoperability);

• the main requirements for ensuring security during inter-system integration, routing/conducting payments using a QR code;

• the responsibility of the parties for fulfilling obligations in the event of situations related to the termination of the parties' activities (license revocation, bankruptcy, etc.), emergency situations in working with the system, as well as force majeure situations;

• the procedure for conducting claim work;

• the distribution of risks and responsibility between the parties in the event of violation of security procedures or other terms of the agreement;

• tariffs;

• the procedure for dispute resolution;

• the procedure for termination of the agreement.

The agreement may provide for other additional conditions.»;

• subparagraph 7 of paragraph 25 shall be amended to read as follows:

“7) the interaction operator shall ensure the timely generation, on a daily basis, of clearing files for final settlements of payments using a QR code by the payment system participants connected to it. In this case, each interaction operator must ensure the guaranteed execution of final settlements for its participants.”;

• in paragraph 28, the words “as well as,” shall be replaced by the words “by these Rules and other”;

• paragraph 39 shall be amended to read as follows:

“39. Payment system participants must quarterly provide to the National Bank information on payments and transfers made by means of QR codes, according to the form of Appendix 2 to these Rules, no later than the twenty-fifth day of the month following the reporting quarter, in electronic form in Excel format, with subsequent dispatch of a paper version of the cover letter.”;

• shall be supplemented with paragraph 39-1. with the following content:

“39-1. The interaction operator must monthly provide to the National Bank information on payments and transfers made by means of QR codes, according to the form of Appendix 4 to these Rules, no later than the fifth day of the month following the reporting month, in electronic form.”;

• in the column “Transfers” of the table of Appendix 2 to the Rules, after the word “Intersystem” add the word “transfers”;

• in the column “Payment for goods/services” of the table of Appendix 2 to the Rules, after the words “Intersystem payments” exclude the word “(out)”;

• The Rules shall be supplemented with Appendix 4 with the following content:

“Appendix 4 to the Rules for conducting payments and transfers using two-dimensional barcode symbols (QR code)

REPORT

on the number and volume of transactions passing through

the interaction operator

Name of the interaction operator ___________________________________ As of _________________________

(period is indicated on a monthly basis)

Month

Number of transactions for the period

Volume of transactions for the period, som

Number of state payments

Volume of state payments (som)

January

February

March

April

May

June

July

August

September

October

November

December

Total:

”.