Resolution of the Board of the National Bank of the Kyrgyz Republic No. 76/7 of 9 December 2015 on Amending and Supplementing the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Instruction on the Procedure for Electronic Payments through the Real-Time Gross Settlement System in the Kyrgyz Republic" No. 25/11 of 27 May 2009

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of 9 December 2015 No. 76/7

On Amending and Supplementing the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Instruction on the Procedure for Electronic Payments through the Real-Time Gross Settlement System in the Kyrgyz Republic" No. 25/11 of 27 May 2009

In accordance with Articles 7 and 43 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Law "On the Payment System of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic

RESOLVES:

1. To introduce amendments and supplements to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Instruction on the Procedure for Electronic Payments through the Real-Time Gross Settlement System in the Kyrgyz Republic" No. 25/11 of 27 May 2009 (attached).

2. To the Legal Department:

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

• after official publication, 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.

3. This resolution enters into force upon the expiration of fifteen days from the day of official publication.

4. To the Payment Systems Department: bring this resolution to the attention of commercial banks of the Kyrgyz Republic.

5. To the Document Management and Communications Department: bring this resolution to the attention of the regional departments and the Representative Office of the National Bank of the Kyrgyz Republic in the Batken region.

6. To entrust control over the execution of this resolution to the Deputy Chairman of the National Bank of the Kyrgyz Republic L. Orozbaeva.

Chairman	T. Abdygulov

	Annex to the Resolution of the Board of the National Bank of the Kyrgyz Republic of 9 December 2015 No. 76/7

AMENDMENTS AND SUPPLEMENTS to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Instruction on the Procedure for Electronic Payments through the Real-Time Gross Settlement System in the Kyrgyz Republic" No. 25/11 of 27 May 2009

To introduce the following amendments and supplements to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Instruction on the Procedure for Electronic Payments through the Real-Time Gross Settlement System in the Kyrgyz Republic" No. 25/11 of 27 May 2009:

1. In the title and throughout the text of the resolution, replace the words "electronic payments through the Gross system" with the words "payments and settlements in the gross system" in the corresponding cases;

2. In the Instruction "On the Procedure for Electronic Payments through the Real-Time Gross Settlement System in the Kyrgyz Republic", approved by the above-mentioned resolution:

1) in the title and throughout the text, replace the words "electronic payments through the Gross system" with the words "payments and settlements in the gross system" in the corresponding cases;

2) throughout the text, replace the words "bank-payer" with the words "participant-payer" in the corresponding cases;

3) restate clause 1.1. as follows:

"1.1. This Instruction has been developed in accordance with the Civil Code of the Kyrgyz Republic, the laws of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", "On Banks and Banking Activity in the Kyrgyz Republic", "On Electronic Document and Electronic Digital Signature", "On the Payment System of the Kyrgyz Republic", the Policy on Supervision (Oversight) of the Payment System of the Kyrgyz Republic approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 38/4 of 15 July 2015, the Regulations "On Non-Cash Settlements in the Kyrgyz Republic" approved by Resolution of the Government of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic No. 420/21/4 of 9 September 2005, and "On the Real-Time Gross Settlement System in the Kyrgyz Republic" approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 29/3 of 1 June 2007, and other normative legal acts of the National Bank of the Kyrgyz Republic (hereinafter - the National Bank).";

4) in clause 1.2., after the words "transmission and processing", supplement with the words "payment documents on paper and";

5) in clause 1.3., replace the word "agreement" with the words "General Agreement";

6) restate clause 1.4. as follows:

"1.4. The principles and methods of risk management in the real-time gross settlement system are set out in the Policy on Risk Management in the Payment System of the Kyrgyz Republic approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 16/4 of 19 May 2005 and the Regulations "On the Real-Time Gross Settlement System in the Kyrgyz Republic" approved by the Board of the National Bank of the Kyrgyz Republic No. 29/3 of 1 June 2007.";

7) restate clause 1.6. as follows:

"1.6. The terms and definitions used in this Instruction correspond to the terms and definitions given in the normative legal acts specified in clause 1.1. of this Instruction. Additionally, the following terms and definitions are used in this Instruction.

Primary payment document - a payment document on paper or in electronic form, drawn up in accordance with the legislation of the Kyrgyz Republic and normative acts of the National Bank, certifying the fact of making a payment.

Settlement window - a period of the system's operating day intended for settling obligations between system participants and making settlements for payments in the payment queue.";

8) in clause 1.8. and throughout the text, replace the word "Participant" with the word "participant" in the corresponding cases;

9) restate the title of section 2 as follows:

"2. Preparation and transmission of payment documents by the participant-payer to the RTGS";

10) in the fourth sentence of clause 2.1., after the words "irrevocable and", supplement with the words "from the moment funds are debited from the client-payer's account, this payment becomes for him";

11) restate the title of section 3 as follows:

"3. Procedure for making payments and settlements in the RTGS";

12) in subclause 3.1.1. of clause 3.1.:

in the ninth row of the table, after the words "initial disconnection", supplement with the words "(settlement window)";

in the second paragraph, replace the abbreviation "KR" with the words "Kyrgyz Republic";

in the second row of the table, after the words "initial disconnection", supplement with the words "(settlement window)";

13) in clause 3.4.:

in subclause 3.4.4. and throughout the text, replace the abbreviation "NBKR" with the words "National Bank" in the corresponding cases;

supplement subclause 3.4.7. with a second sentence as follows:

"In the RTGS, final settlement is unconditional and irrevocable.";

restate subclause 3.4.8. as follows:

"3.4.8. The participant-payer bears responsibility for the correctness of the transmitted payment documents and messages from the moment of transmitting to the client-payer confirmation of acceptance of the payment for execution and debiting funds from the client-payer's account until the moment of transmitting the payment documents to the RTGS operator.";

supplement with subclauses 3.4.9. and 3.4.10. as follows:

"3.4.9. The RTGS operator bears responsibility for making the payment from the moment of transmitting to the participant-payer confirmation of acceptance of the payment for execution until the moment of making final settlement on the correspondent (current) accounts of participants opened with the National Bank.

3.4.10. The participant-recipient of the payment bears responsibility from the moment funds are credited to the correspondent (current) account of the participant-recipient with the National Bank until the moment the received funds are credited to the account of the client-recipient of the payment.";

14) in subclause 3.5.2. of clause 3.5. and throughout the text, replace the words "bank-recipient" with the words "participant-recipient" in the corresponding cases;

15) in subclause 3.9.1. of clause 3.9., in the third sentence, exclude the words "and is intended for settling the positions of participants whose payments are in payment queues.";

16) restate clauses 4.1. and 4.2. as follows:

"4.1. All payments and settlements in the RTGS are made only within the credit balance on the correspondent (current) account of the participant-payer opened with the National Bank.

4.2. In case of insufficient funds on the correspondent (current) account of the participant-payer with the National Bank, the given payment is placed in the payment queue.";

17) in clause 4.3.:

in the second paragraph, replace the word "passage" with the word "processing";

restate the third paragraph as follows:

"- conduct monitoring of the balance of funds on their correspondent (current) account opened with the National Bank in real time;";

18) restate the fourth paragraph of clause 4.4. as follows:

"- apply to the National Bank for an intraday credit and overnight credit in accordance with the normative legal acts of the National Bank;";

19) restate clause 5.1. as follows:

"5.1. Tariffs for services provided by the National Bank for processing payments in the RTGS are established by the RTGS operator in accordance with the Policy on Pricing and Setting Tariffs for Services Provided by the National Bank of the Kyrgyz Republic approved by Resolution of the Board of the National Bank No. 45/11 of 23 November 2002, approved by the Board of the National Bank and published on the official website of the National Bank.";

20) restate clause 6.1. as follows:

"6.1. RTGS participants archive all sent and received EPDs and messages and store them within the period established by the legislation of the Kyrgyz Republic and normative legal acts of the National Bank.";

21) recognize clause 7.2. as having lost force;

22) in clause 7.3., after the words "in accordance with", supplement with the words "the legislation of the Kyrgyz Republic and";

23) recognize clauses 7.4. and 7.5. as having lost force.