Bangladesh Real Time Gross Settlement (BD-RTGS) System Rules

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The key takeaways are that the document outlines the rules and procedures for Bangladesh's real-time gross settlement system for large-value and urgent payments.

The purpose of the Bangladesh Real Time Gross Settlement (BD-RTGS) System Rules is to establish the framework for the operation and management of the BD-RTGS system in Bangladesh.

The different message categories used in the BD-RTGS system include payment messages, system messages, and information messages as described on page 5.

BANGLADESH REAL TIME GROSS SETTLEMENT

(BD-RTGS) SYSTEM RULES

Bangladesh Bank
Bangladesh Real Time Gross Settlement
(BD-RTGS) System Rules

Payment Systems Department


Bangladesh Bank

September 2015
Version 1.2
Table of Contents
INTRODUCTION .................................................................................................................................................... 1

01. OBJECTIVE........................................................................................................................................... 1
02. OVERVIEW........................................................................................................................................... 1
03. FINALITY AND IRREVOCABILITY OF PAYMENTS.................................................................... 2
04. RTGS UTILITIES............................................................................................................................... 2
01. ACCESS CRITERIA AND CONDITIONS ............................................................................................. 3

1.1 MEMBERSHIP...................................................................................................................................... 3
1.2 MEMBERSHIP CRITERIA.................................................................................................................. 3
1.3 OBLIGATION AND RESPONSIBILITY............................................................................................ 4
1.4 ROLE OF BANGLADESH BANK...................................................................................................... 4
02. MESSAGES ....................................................................................................................................................... 5

2.1 MESSAGE CATEGORIES................................................................................................................... 5


2.2 MESSAGE FORMATS......................................................................................................................... 5
2.3 TRANSACTION REFERENCE NUMBER........................................................................................ 7
2.4 PAYMENT INFO. NEEDED TO BE SUPPLIED TO THE RECEIVER............................................ 7
03. PAYMENT PROCESSING PROCEDURES .......................................................................................... 8
3.1 SUITABLE PAYMENTS...................................................................................................................... 8
3.2 ACCEPTABLE CURRENCIES............................................................................................................ 8
3.3 VALUE LIMITS.................................................................................................................................... 8
3.4 VALUE DATES.................................................................................................................................... 8
3.5 PAYMENT PRIORITIES...................................................................................................................... 8
3.6 MODIFICATION OF PRIORITIES...................................................................................................... 9
3.7 SUBMISSION AND VALIDATION.................................................................................................... 9
3.8 USE OF APPROPRIATE ROUTING INFORMATION...................................................................... 10
3.9 EXECUTION AND NOTIFICATION.................................................................................................. 10
3.10 PROFILE MATCHING AND SANCTION SCREENING................................................................... 11
3.11 TRANSACTION QUEUEING.............................................................................................................. 11
3.12 GRIDLOCK RESOLUTION................................................................................................................. 11
3.13 CANCELLATION PAYMENTS........................................................................................................... 12
04. MANAGEMENT OF PAYMENTS ........................................................................................................... 13

4.1 MONITORING PAYMENT FLOWS.................................................................................................. 13


4.2 EXECUTION AND POSTING OF PAYMENTS................................................................................. 13
4.3 RETURN PAYMENTS......................................................................................................................... 13
4.4 RESPONSIBILITIES OF THE PARTICIPANTS................................................................................. 15
4.5 RESPONSIBILITIES OF BANGLADESH BANK.............................................................................. 15
05. LIQUIDITY AND TREASURY MANAGEMENT .............................................................................. 17

5.1 SETTLEMENT AND RESERVE ACCOUNTS................................................................................... 17


5.2 INTRADAY LIQUIDITY FACILITY................................................................................................... 17
06. BUSINESS DAY AND OPERATING HOURS ...................................................................................... 18

6.1 BUSINESS DAY................................................................................................................................... 18


6.2 DAILY OPERATION TIMETABLE.................................................................................................... 18
6.3 OPERATING HOURS........................................................................................................................... 19
07. FEES AND CHARGES .................................................................................................................................. 20
08. CONTINGENCY AND BUSINESS CONTINUITY ............................................................................. 21

8.1 GENERAL OBLIGATIONS.................................................................................................................. 21


8.2 FAILURE OF COMMUNICATION LINKS......................................................................................... 21
8.3 FORCE MAJEURE................................................................................................................................ 22
8.4 CONSERVATION AND ARCHIVING................................................................................................ 22
8.5 AUDIT TRAIL....................................................................................................................................... 22
09. ESTABLISHMENT AND MAINTENANCE OF USERS .................................................................. 24

9.1 GENERAL............................................................................................................................................. 24
9.2 REQUEST TO CREATE A USER...................................................................................................... 24
9.3 REQUEST TO MODIFY A USER...................................................................................................... 25
9.4 REQUEST TO SUSPEND OR DELETE A USER............................................................................ 25
9.5 MAINTAINING USER PROFILE........................................................................................................ 25
10. DISPUTE RESOLUTION ............................................................................................................................ 26

10.1 DISPUTE RESOLUTION PROCEDURES........................................................................................... 26


10.2 CONCILIATION AND ARBITRATION PROCEDURES................................................................... 26
11. AMENDMENT OF RULES ......................................................................................................................... 27

ANNEX 1 : SWIFT BIC CODES ..................................................................................................................... 28


ANNEX 2 : PARTICIPATION AGREEMENT ......................................................................................... 30
ANNEX 3 : DAILY OPERATING TIMETABLE ..................................................................................... 31
ANNEX 4 : TRANSACTION TYPE CODES ............................................................................................. 32
ANNEX 5 : GUIDELINES OF INTRADAY LIQUIDITY FACILITY ........................................ 33
ANNEX 6 : GUIDELINES OF INTRADAY LIQUIDITY FACILITY
FOR ISLAMIC BANKS ................................................................................................ 36

GLOSSARY OF TERMS ..................................................................................................................................... 38


INTRODUCTION

01. Objective
The purpose of this document is to define the System Rules for Bangladesh
Real Time Gross Settlement (BD-RTGS) System. These Rules define
operational aspects of BD-RTGS, together with the duties and obligations of all
Participants including Bangladesh Bank (BB) in its role as both System
Operator and as a Participant. These Rules shall be applicable to all
Participants that are authorised by BB and have signed their agreement hereto.

These Rules means all the conditions mentioned here and each related Annex
and attachment thereto and hereto, as supplemented by other related
materials, including Functional Specifications, related circulars and instructions
of BB. Any of these Materials may be amended from time to time. If there is a
conflict between these Rules and any Annex, the terms of the Annex will prevail
in respect of the relevant Service. Section 11 describes how these Rules may
be amended from time to time. All time indications in these rules relate to the
Bangladesh Standard Time (BST).

02. Overview
BD-RTGS is a realtime interbank large value electronic funds transfer
mechanism for both local and foreign currency transactions. Participating banks
will be able to transfer funds on 'real time' and on 'gross' basis. Settlement in
`real time’ means transaction is not subjected to any waiting period. `Gross
settlement’ means the transaction is booked in central bank’s account on one to
one basis without netting with any other transaction. BD-RTGS will
accommodate only credit transfers from participating banks while Bangladesh
Bank and other payment system operator(s) may be allowed to settle both
credit and debit transatctions. The participants in the BD-RTGS system are as
follows:

a) Originator: The Originator is the entity that agrees to make payment to


a receiver by initiating RTGS entries into the system. The Originator is
usually a company, bank itself, government agency or an individual
instructing the Originating Bank to debit his/her/its account and credit
the amount to another customer’s account with a Receiving Bank.
However, as an exception, Bangladesh Bank or other Payment
System Operator(s) can act as an Originator and may send
instructions directly to the system in which other participants’ account
may be debited and/or credited.

b) Originating Bank (OB): The Originating Bank is the bank which receives
payment instructions from its customer (the Originator) and forward
the instruction to BD-RTGS system.

c) Bangladesh Real Time Gross Settlement (BD-RTGS) System : BD-


RTGS System is the central processing and settlement facility,
operated by Bangladesh Bank. The system receives instructions from

BD-RTGS System Rules 01


Originating Banks, and before distributing the instructions to the
appropriate Receiving Bank, it does the settlement.

d) Receiving Bank (RB) : The Receiving Bank is the bank that receives
RTGS payment instructions from BD-RTGS System and post the
same to the appropriate account which may be its customer
(Receiver).

e) Receiver: A Receiver is a person/organization that has agreed with an


Originator to receive RTGS payment to its account maintained with a
Receiving Bank.

03. Finality and irrevocability of Payments


A valid RTGS payment is final and irrevocable. As from the moment that the
central System has accepted a Payment Instruction for Settlement, withdrawal
by the Originator/OB or by the System is not allowed unless the payment is
queued for settlement and is allowed to do the cancellation. Settlement will be
final and unconditional at the moment that the Settlement Accounts of OB and
RB have been debited and credited. There is no perceptible delay between the
acceptance for Settlement and the final Settlement in RTGS System.

Originator Finality: Settlement Finality: Receiver Finality:


Originator has sent Payment has been Payment Is
Payment Order, and irrevocably and unconditionally
amount debited from unconditionally credited to
the account. settled by RTGS receiver’s account

Originating Receiving
Originator BD-RTGS Receiver
Bank Bank

Figure 1: Finality and irrevocability of payments

04. RTGS Utilities


BD-RTGS is the interbank large value payment system which accommodates:
Local and approved foreign currency payments initiated by OBs on their own
behalf and on behalf of their customers;
The transactions involving Government securities processed through the
securities registration systems maintained by BB Market Infrastructure (MI)
Module and Islami Bond System (IBS), on the principle of Delivery versus
Payment (DvP).
The final and irrevocable gross settlement in Participants¡¦ Settlement
Accounts of the net positions arise from the Deferred Net Settlement (DNS)
operations of:
the Bangladesh Automated Cheque Processing System (BACPS);
the Bangladesh Electronic Funds Transfer Network (BEFTN);
the National Payment Switch Bangladesh (NPSB);
or from any other multilateral interbank DNS system that BB may deem
appropriate.

02 BD-RTGS System Rules


1. ACCESS CRITERIA AND CONDITIONS

1.1 Membership
BD-RTGS membership is mandatory for all schedule banks in Bangladesh.
All initial and future members shall have relevant systems, procedures and
trained staff meeting the criteria set by Bangladesh Bank. Participants shall
endeavor to keep their systems updated and in synchronization with the
central RTGS System and with the policy and procedures prescribed by the
Central Bank. Bangladesh Bank is the sole authority to make decision to
incorporate other/new member(s) and may refix the criterias for existing
members as and when it may deems appropriate. Currently, there are four
types of Members recognised in BD-RTGS:

Direct Member: is a member which has a Deposit Account with


Bangladesh Bank’s CBS and a settlement account with BD-RTGS
System and is directly connected to RTGS (either viaVPN or SWIFT). The
Direct Participants are:
Scheduled Banks in Bangladesh and
BB itself.
Indirect Member: a member which has a Deposit Account with BB and a
settlement account with BD-RTGS but has no direct connection to the
System (its connection is via the network of a Direct member). Few small
Schedule Banks may choose to be an indirect member.
Special Member: a Clearing House which has no Current Account with
BB but may directly be connected to the System for submission of DNS
Files. The Special members, currently, are:
the Bangladesh Electronic Funds Transfer Network (BEFTN);
the Bangladesh Automated Cheque Processing System (BACPS);
the National Payment Switch Bangladesh (NPSB).
Monitoring Member: a member which has no Deposit Account with
Bangladesh bank and no settlement account with BD-RTGS, however,
these organisations may have a connection to the System for the purpose
of monitoring their incoming payments, These organizations may be:
The Controller General of Accounts (CGA) and
The National Board of Revenue (NBR) authority.

1.2 Membership Criteria


BD-RTGS participation in the form of direct membership is mandatory for all
the schedule banks in Bangladesh. However, before sending live payment
instructions, banks need to pass the System Integration Test (SIT) and
should sign agreement with Bangladesh Bank.

BD-RTGS System Rules 03


1.3 Obligation and Responsibility
Participants are liable for any damage resulting from non-compliance with the
procedures or from improper or fraudulent use thereof and in particular are
fully liable for every transaction performed by their user(s). Each participating
bank shall ensure that its own system and procedures provide appropriate
protection against fraudulent activity in connection with the system. All actual
or suspected fraudulent activity in connection with RTGS must be reported
immediately to the General Manager, Payment Systems Department,
Bangladesh Bank whether such fraud or suspected fraud is on the part of the
participant’s staff or customer or anyone else.

1.4 Role of Bangladesh Bank


Bangladesh Bank as the central bank of Bangladesh is the System Operator
for BD-RTGS. It is the entity with the legal responsibility for controlling,
managing and operating BD-RTGS. BB in its capacity as the central bank of
Bangladesh would administer the Settlement Accounts of the Participants
and provides Intraday Liquidity Facilities (ILF) to ensure efficient and sound
payment, clearing and settlement process. In its capacity as the System
Operator, BB is responsible for:

Authorisation of Participants in the BD-RTGS System ;


The establishment and maintenance of Rules and related Procedures ;
The authorisation of operating standards and procedures for BD-RTGS
System ; and
The adherence to these Rules by the Participants.

As System Operator of BD-RTGS, BB administers the operation of the daily


business cycle, manages the creation of reports and charts and is
responsible for the security of RTGS data, central software/services,
including managing backups and fallback situations of the central system.

BB may, at its own discretion, delegate operational tasks to third parties


however, this delegation has little effect on BB’s responsibilities towards the
Participants.

04 BD-RTGS System Rules


2. MESSAGES

2.1 Message Categories


RTGS accepts messages from Participants in two categories:
1. Transfers, i.e. Payment Instructions.
2. Queries, which are divided into:
a. Transactional Requests, which change the status of a Transfer;
b. Informational Requests, which do not affect Transfers rather a
request to provide information.

Both payment requests and queries will result into outgoing messages
includes notification about related event happening in the system.

2.2 Message Formats


All messages must conform to MX (ISO 20022) formatting as defined in the
Technical Documentation. The following message types would be accepted by
BD-RTGS.

Message MT Equivalent Description Message directions


Type (MX)
camt.003 MT985/STAT Get account ParticipantJRTS/X

camt.004 MT986/STAT Return account RTS/XJParticipant

Notification for Participants


camt.004 MT986/PCPR having not enough funds to RTS/XJParticipant
cover their Net Debit position

Request for RTGS payments


camt.005 MT985/SQDC ParticipantJRTS/X
queue summary information

MT195/STAT or
camt.005 Request for a status of transfer ParticipantJRTS/X
MT295/STAT

MT195/DUPL Request to get a copy of


camt.005 or transfer previously sent to ParticipantJRTS/X
MT295/DUPL the System

Reply on related request for


camt.006 MT986/SQDC RTGS payments queue RTS/XJParticipant
summary information

MT196/STAT or Reply on a request for a status


camt.006 MT296/STAT of transfer RTS/XJParticipant

MT196/DUPL Reply on request to get a copy


camt.006 or of transfer previously sent to RTS/XJParticipant
MT296/DUPL the System
MT195/PRTY or Request to change a Priority of
camt.007 ParticipantJRTS/X
MT295/PRTY nonsettled transfer

BD-RTGS System Rules 05


Request to cancel non-settled
camt.008 MT192 or (noncleared) transfer previously Participant RTS/X
MT292 sent to the System
camt.018 MT999 Get Business Day Information Participant RTS/X
camt.019 MT999 Return Business Day Information RTS/X Participant
Interim transaction report that is
camt.052 MT941 generated by related request RTS/X Participant

Final Statement report on all


settlement operation with specified
camt.053 MT950 account within a current business RTS/X Participant
day. Includes RTGS payments only.
Credit confirmation. Confirms
camt.054 MT910 RTS/X Participant
debiting of an account when
CR
related transfer is settled.

Debit confirmation. Confirms


camt.054 MT900 RTS/X Participant
debiting of an account when
DR
related transfer is settled.
Request to get an account
camt.060 MT920 balance report or interim Participant RTS/X
transaction report

MT199/ TEXT This message represents an


camt.998 MESSAGE or e-mail sent from one Participant Participant RTS/X
MT999/ TEXT to another. BB may be issuer or Participant
MESSAGE receiver of this message as well.

camt.998 MT998 Proprietary message Participant RTS/X

pacs.002 MTn96/STAT Payment status notification RTS/X Participant


This message is generated if
error occurs in related request
message processing.
camt.025/
MTn96/ERRC RTS/X Participant
ERRC
This message is also sent if
payment message has not
passed initial validation
procedures.
camt.025/ Reply on successful processing
OK MTn96/OK of a request RTS/X Participant

pacs.004 MT103 MT103 Return payment RTS/X Participant


pacs.008 MT103 Single customer credit transfer RTS/X Participant

Net balance positions from


Clearing systems or other Net
pacs.009 MT971 system (e.g. Depository or DNS system(s)
Switch) for operations RTS/X
performed on net basis

06 BD-RTGS System Rules


General Financial Institution
pacs.009 MT202 transfer RTS/XJParticipant

pacs.010 MT204 Interbank direct debit RTS/XJParticipant


pacs.008 MT102 Multiple Customer Credit Transfer RTS/XJParticipant

2.3 Transaction Reference Number


There must be a sixteen digit transaction reference number inserted by the
Originating Bank to each RTGS payment instruction. This number consists of
a 3 digit bank code (used for BACH), 6 digit value date (DDMMYY format),
and a seven digit transaction serial number (unique for the day) for that
particular OB.

2.4 Payment Info. needed to be supplied to the receiver


Important payment information like name of the Originator and description of
payment, in case of trade payments, additional information like invoice
number/reference number(s) needed to be supplied to the Receiver by the
Receiving Bank by means of monthly statement or by any other means
convenient.

BD-RTGS System Rules 07


3. PAYMENT PROCESSING PROCEDURES

3.1 Suitable Payments


BD-RTGS is designed to process interbank electronic credit transfers carried
out both by the Originating Banks’ own behalf and on behalf of an Originator,
besides these, other transactions that can be processed are:

a) DNS Files created by Clearing Houses and/or Payment System


Opeartors;
b) Transactions in securities transfers mainly carried out by the Market
Infrastructure (MI) module and Islami Bond System in accordance
with the principles of DvP.

3.2 Acceptable Currencies


RTGS processes payments in the following currencies:

1. Bangladesh Taka (BDT);


2. British Pound (GBP);
3. Canadian Dollar (CAD);
4. Euro (EUR);
5. Japanese Yen (JPY) and
6. United States Dollar (USD).

Each Participant has a single Settlement Account for each currency in BD-
RTGS System. Each Participant will also have a ILF account for BDT only.

3.3 Value Limits


The minimum amount for an RTGS payment in BDT is 1,00,000.00 (Taka
one hundred thousand). However, there is no minimum limit for foreign
currency payments and BB may choose to relax this limit for specific local
currency payments (like Tax, VAT and Customs duty) as well. There is no
maximum limit for the amounts that may be transferred through BD-RTGS
except the system’s acceptable amount field limit, which is 17 digits.

3.4 Value Dates


BD-RTGS will work in a store-and-forward mechanism, which made it
possible to process both same day as well as future dated transactions upto
next 7 business days.

3.5 Payment Priorities


BD-RTGS allows Participants to assign Priorities to the Payments. Priority
codes vary from 1 to 99. Bangladesh Bank payments have the highest
Priority while DNS Files have the next priorities. The order in which payments
in the waiting queues are settled depends first on the Priority, and second on

08 BD-RTGS System Rules


the time they are validated by RTGS within each Priority. The range of
message priorities are mentioned below :

Priority Transaction Type/Class

1 Exceptional Priority

2-3 Net Transactions

4 ILF and ILF Maturity operations

5 Securities transactions from SSS

6-9 CBJ and MOF Transactions

10-20 Participants - Urgent priority

21-49 Participants - Normal priority

50-98 Participants - Low priority

99 Settle or reject mode

3.6 Modification of priorities


A Participant may change the Priority of a queued payment message that
has submitted but not been settled yet. The priority may be changed through
the participants’ web access. Procedure(s) for changing Priority codes is
defined in the technical document.

3.7 Submission and validation


The Participants shall take all necessary measures to optimise the smooth
flow of the payments, especially by adhering to the published message
format alongwith the processing timetable. Payment Instructions sent by
Participants shall immediately be validated by BDRTGS system. The
‘handover point’ between a Participant and RTGS is the point of Technical
Acceptance. This happens when RTGS receives and validates a Payment
Instruction and therefore accepts it for Settlement. An acknowledgement
message is sent to the Originating Bank at this point. Messages which fail
validation are rejected and the reason(s) are reported back to the OB.

Error notifications contain a clear identification of fields and positions where


the error is found. Validation consists of the followings:

Authenticity check - check if particular message is received from valid


source and was not altered during transmission;

BD-RTGS System Rules 09


Syntax check - check if the particular message is valid in terms of
supported message format
Semantic check - check if the message is valid according to rules
applicable for particular message type.

3.8 Use of appropriate routing information


While sending a Payment Message in BD-RTGS, the Originating Bank must
ensure that the correct SWIFT BIC code (See Appendix 1) of the Receiving
Bank along with an appropriate routing number for the Receiving Bank
Branch is used. Central RTGS system will maintain a list of Routing Numbers
for RTGS enabled bank branches, and will verify the list before sending
information to the Receiving Bank. If the Receiving Bank branch is not in the
list, the transaction will be rejected without settlement. The Originating Bank
will be solely responsible for any consequence in processing and settlement
due to its inputting erroneous routing information.

3.9 Execution and notification


Payment instructions sent by an OB shall be executed in BD-RTGS System
by debiting the amount to the OB’s settlement account and crediting the
amount to the concerned RB’s settlement account. The OB and the RB shall
be advised of the execution of Payment Instruction by BD-RTGS system.
The detailed processing, execution and notification of Payment Instructions is
described in the Technical Documentation. The System Rules deal only with
the basic principles.

The activity and status of a Payment Instruction is charted below:

Submission Technical Acceptance for Immediate


and Acceptance Settlement by Settlement
validation and queuing RTGS with finality

The Payment If the submitted instruction Once the Acceptance for


Instruction or DNS is found technically fine Participant/s to be Settlement is
File has been then the RTGS applies its debited has/have immediately
transmitted to liquidity test to the sufficient funds followed by
RTGS. Instruction or DNS File. If available, the unconditional and
RTGS conducts insufficient funds are Payment irrevocable
various operational available, or there are Instruction or DNS settlement with
processes on the already queued payments File is accepted for finality
payment, such as with the same or higher Settlement by (Participant/s
validation. Payment Priority, the Payment RTGS. debited, beneficial
Instructions which Instruction or DNS File is Participant/s
fail validation are queued or cancelled in credited).
rejected. accordance with the
operating timetable.

10 BD-RTGS System Rules


3.10 Profile matching and sanction screening
All RTGS payments are subjected to sanction screening as per the BFIU
rules and guidelines. The responsibility of both profile matching and sanction
screening is vested to the bank where the complete customer KYC is kept.
Therefore, it is the responsibility of the Originating Bank to ensure the
sanction screening and profile matching of the Originator before sending an
instruction to BD-RTGS System, while Receiving Bank would be responsible
to verify the same for the Receiver before crediting the account.

3.11 Transaction queueing


If a payment instruction cannot be settleted immediately because of lack of
funds on OBs settlement account, it must be put in the queue. BD-RTGS will
put the instruction in a queue depending on different parameters. The most
important among these are the time of acceptance of transaction and the
priority attached to it.

If a participant wishes some Payment Instructions to be treated preferentially,


they shall insert a higher Priority code (from 11-99) in those messages. The
order in which payments in the Queues are executed depends first on the
Priority and second on the time they are validated by BD-RTGS System.
RTGS treats payments with the same Priority in each Queue on the basis of
the FIFO (“First In First Out”) principle.

Each participant may control their queue by re-ordering the priority in the
queue or cancelling queued payments, while BB may re-order or cancel any
queued payment if it deems fit.

3.12 Gridlock resolution


Gridlock occurs when two or more payment queues are blocked due to
shortage of funds. Gridlock Resolution is achieved by simulating a bilateral or
multilateral netting procedure. This involves netting off Payment Instructions
in the Queue presented by an OB or OBs against those to be received by the
same OB(s) on the assumption that all Payment Instructions would be
carried out simultaneously. As a consequence, of a successful resolution,
some other pending transactions may be released as well.

BD-RTGS contains a special algorithm intended to resolve payment


gridlocks. The system detects gridlock situation and selects those payments
that can be settled on a Net basis without injecting additional funds into
participants’ settlement accounts. The system detects gridlock based on
parameters mentioned below:

Number of Payment instructions in the queue


Amount of funds available in the settlement account of those
participants
Number of payments that were queued since last payment settled

BD-RTGS System Rules 11


Based on the parameters, BD-RTGS system would issue an alert to BB
system administrator and the system administrator(s) may decide to trigger
the Gridlock Resolution Procedures. During Gridlock Resolution process,
payment instructions queued are frozen and new payment instructions are
not taken into account until the process is completed. After reactivation of
normal exchange period these new payment instructions will be accepted
automatically on queue-ordering basis.

3.13 Cancellation payments


A queued payment instruction may be cancelled by the Originating Bank or
by Bangladesh Bank at any time before settlement. However, unsettled
payment instructions (if any) in the queue after the regular transaction period
will automatically cancelled by the system.

12 BD-RTGS System Rules


4. MANAGEMENT OF PAYMENTS

4.1 Monitoring Payment Flows


Each Participant shall be responsible for monitoring throughout the day the
Settlement of the payment instructions it has sent, the number and amount of
payments pending in its Queues, the balance of both its Reserve and
Settlement Account, its ILF status. Each Participant must aim to avoid having
unsettled payments.

BB shall not be liable for any loss incurred by a Participant due to failure by a
Participant to monitor and reconcile its payment flows, and each Participant
hereby agrees to hold BB and the other Participants harmless from and
against any claim, cost or expense (including legal fees) resulting from their
failure to monitor their payment flows and their failure to post and reconcile.

4.2 Execution and posting of payments


An Originating Bank shall send Payment Instructions to BD-RTGS system on
behalf of their customers within at most 30 (thirty) minutes from the receipt of
the corresponding request, and debiting his/her account. While all settled
customer payments shall have to be posted to the Receiver’s accounts within
at most 30 (thirty) minutes following the notification of the settlement received
from BD-RTGS. If the account number and the name of the receiver
contained in an instruction do not relate to the same account, the RB may
rely solely on the account number contained in the instruction for purpose of
posting.

4.3 Return payments


Return payments/Payment instructions can be initiated either by the
Originator/OB or by the RB of the original payment:

On request by the OB/Originator: an OB/Originator may request the return of


a completed payment from the RB. The request must be made In Writing, i.e.
by email, fax or letter. In this case, the RB will return the fund to the
OB/Originator, if the funds are still available in the account of the Receiver. If
the funds are not available, the RB will cooperate with OB/Originator to
collect the fund.

At the initiative of the RB: if a Receiving Bank aware that its Settlement
Account has received a payment erroneously or for the wrong amount, it will
return the payment to the Originating Bank.

In both cases the return payment will be made using the required message
type (pacs.004) containing (inter alia):

BD-RTGS System Rules 13


The identification of the original payment (i.e Transaction Referrence
Number)
A Return Reason Code selected from the table below (note that the
codes in the table have the same meanings as their counterparts in
the BEFTN Operating Rules).

Return Reason Codes

Sl. Code Meaning


01 XR 01 Account Closed
02 XR 02 No Account/Unable to Locate Account
03 XR 03 Invalid Account Number
04 XR 04 Returned per Originator/Originating Bank’s Request
Representative Payee Deceased or Unable to Continue
05 XR 05 in that Capacity
Beneficiary or Account Holder (other than a Representative
06 XR 06 Payee) Deceased

07 XR 07 Account Frozen
08 XR 08 Non-Transaction Account

Entry Refused by the Receiver, because:


Minimum amount required has not been remitted;

09 XR 09 Exact amount required has not been remitted;


The account is subject to litigation;
Amount is too high;
Originator is not known to the Receiver;
The Receiver has not authorised this credit entry to this account.

Payments must be returned:

The same day of receipt of the request by the Receiving Bank, made
by the Originator/OB ;
Within one hour of receipt of the original payment where RB detects it
as an erroneous payment.

If the return payment has not been made available within the timeline above,
the Originating Bank/Originator may claim interest for the delayed period
from the RB. This interest will be calculated on the basis of the overnight
deposit rate applicable.

14 BD-RTGS System Rules


4.4 responsibilities of the participants
The participants shall issue their payment instructions to BD-RTGS in
accordance with these rules and shall adhere and be held responsible for the
followings:

a) the completeness and authenticity of the information they send on


their own behalf and on behalf of their customers;
b) the compliance of payment messages with the agreed-upon technical
protocols and formats;
c) securing the access to their BD-RTGS Monitoring and Control
Workplace(s) and ensure proper segregation of duties and
responsibilities among the operational team;
d) ensuring that they collect all data provided to them by BD-RTGS;
e) ensure that all customer payments are send and posted in
accordance with these Rules
f) ensuring that only duly authorized Users who have been issued with
an access control e-token by BB are using the System.

Each Participant shall be responsible for monitoring, throughout the day, the
Settlement of the payments it has sent, post the payments it has received,
the number and amount of payments stored in outward Queues, any queued
net and gross settlement instructions, the balance of its Settlement Account,
its ILF position and the level of its Reserves. Each Participant shall aim to
avoid having any unsettled payments.

BB shall not be liable for any loss incurred by a Participant due to a failure on
the part of that Participant to monitor and reconcile its payment flows, and
each Participant hereby agrees to hold BB and the other Participants
harmless from and against any claim, cost or expense (including legal fees)
resulting from their failure to monitor their payment flows and their failure to
reconcile.

4.5 responsibilities of Bangladesh Bank


To the extent consistent with applicable law, BB shall be liable only for its
failure to act in good faith or to exercise reasonable care to operate the
central RTGS processing engine. BB shall not be liable for delay or failure in
performance by a Participant or a third party, nor the accuracy of any data or
instructions provided by a Participant or a third party. Under no
circumstances shall BB be liable for any indirect, incidental or consequential
loss (including loss of profit) even if advised of the possibility of such loss.

As System Operator, BB:

a) is responsible for checking the Payment Instructions received in


accordance with the published format;

BD-RTGS System Rules 15


b) is responsible for, (once RTGS has technically accepted the Payment
Instruction for processing), integrity, security and confidentiality of a
Payment Instruction until it is dispatched to the Receiver.
c) is responsible for keeping a record of all Payment Instructions
according to relevant Bangladesh legislation;
d) is not responsible for damage resulting from messages containing
erronious information provided by the Originator/Originating bank;
e) will take all necessary reasonable measures to protect its computer
system and to prevent it from being out of order and endeavour to
offer as quickly as possible, upon every breakdown or important
Constraining Event, a solution to the problem by carrying out the
appropriate fall back procedures. If these measures have been
taken, BB is no longer responsible for the possible breakdown or
Constraining Event, even temporary, for any reason, of the
computers or the programs it uses or places at the disposal of its
Participants for the processing of their payments, nor for the
destruction or erasing of data stored in the computers or for possible
fraudulent use thereof by third parties;
f) is responsible for making available to the Participants the updated
information concerning their payment flows and the status of their
Settlement Accounts as generated by the System.

The liabilities of BB as Technical Operator are limited to:

a) the correct operating of the System as described in the Functional


Specification;
b) securing by means of adequate devices and procedures the System
as regards data integrity, availability and confidentiality;
c) endeavouring to solve without delay, and in close co-operation with
the hardware, software and/or service providers, any failure or
malfunction of the System.

BB shall not be liable for any failure of RTGS resulting from the incorrect use
of the System by the Participants or due to software errors or communication
failures. Except as provided in this section, BB shall have no liability
whatsoever to any Participant or any other person for any loss, liability, or
expense suffered by such Participant or person arising from BB’s acts or
omissions in connection with RTGS.

16 BD-RTGS System Rules


5. LIQUIDITY AND TREASURY MANAGEMENT

5.1 Settlement and reserve accounts


Each participating bank has one settlement account per currency in BD-
RTGS system. These settlement accounts would start with a zero (0)
balance at the beginning of each business day and ends with a zero balance
at the end of the business day. Each bank would provide BB with a standing
instruction to deduct a pre-fixed sum from its reserve account held in the
CBS and transfer the same to its settlement account. These instructions,
however, may be changed from time to time. The reserve account of
Bangladesh Bank will be updated with the settlement account balance at the
end of the day.

5.2 Intraday liquidity facility


BB makes liquidity available, in BDT only, to Participants on an intraday basis
in accordance with the Guidelines of Intraday Liquidity Facility (see Annex-5)
and the Guidelines of Intraday Liquidity Facility for Islamic Shariah based
banks (see Annex-6). Each Participant will have a BDT ILF account which is
debited whenever the Participant needs to make use of the ILF, up to a limit
set by BB for each Participant. The limit is covered by the securities which
they possess in the MI or Islami Bond System. In each case the amount
debited from the ILF Account is credited to the Participant’s Settlement
Account and is thus available for making payments. The ILF is invoked
automatically whenever RTGS detects that one or more of certain thresholds
have been exceeded.

The ILF is available strictly Intraday only and any ILF advances must be
reversed before the end of the RTGS operating hours as per the Daily
Timetable. If a Participant fails to do so, the ILF will be converted to an
overnight Repo with BB at a higher interest rate along with other non-
financial penalties like suspension of operation (As per the Guidelines :
Annex 5 & 6).

As stated above, the ILF is available in BDT only. Payment Instructions in


other currencies will be settled only if there is a sufficient fund in the
Participant’s Settlement Account, otherwise the payment instruction would be
queued until sufficient funds are available, or cancelled if they are still
queued at end of day.

BD-RTGS System Rules 17


6. BUSINESS DAY AND OPERATING HOURS

6.1 Business day


BD-RTGS System will operate each day Sunday to Thursday except for
public holidays according to the annual calendar maintained by BB. Any
deviations from this planned schedule will be announced in advance in
writing (i.e. via letter/e-mail). In exceptional circumstances this
announcement may be made during the Business Day and may have the
effect of shortening or lengthening that particular Business Day.

6.2 Daily operation timetable

A business day schedule is composed of a sequence of periods.


During each period there is a defined set of actions which may be
carried out, as defined in the following paragraphs.
System Start : The System is opened in offline mode for testing of
connections.
Account House keeping : During this period BB System
Administrators carry out any necessary service functions, Settlement
Account balances are set to zero and then loaded from BB¡¦s CBS.
Morning Exchange Period : During this period Participants (including
BB) will exchange their payments (interbank and customer
payments). In addition DNS Files from Clearing House(s) may be
received and settled.
Afternoon Exchange Period : Same as Morning Exchange Period
(the differentiation is made primarily for transaction fees, which
usually differs from morning and afternoon periods).
Evening Exchange Period : During this period Participants may enter
interbank transfers only (pacs.009), with the aim of ensuring that
their Settlement Accounts are in credit for end of day and that all
queued transactions are settled. All ILFs must be repaid by the end
of this period.
Exchange Period for Queued Participants : This period is optional.
Only payments with specific Transaction Type Codes (TTCs) are
allowed in this period.
Payment Cancellation : BB System Administrators may launch
Gridlock Resolution prior to cancellation of outstanding queued
payments.
ILF reversals are carried out.
Unsettled queued payments are cancelled at the end of this period.

18 BD-RTGS System Rules


Statement Reports : Balance statement are sent to BB¡¦s CBS
(remaining balances in Settlement Accounts are transferred to the
reserve account).
Reports on account balances and transaction reports for participants
are generated automatically by the System.
End-of-Day Reconciliation with Participants : During this period
Participants may make enquiries on the System about payments and
account balances in order to reconcile this information with their
accounting systems, if necessary.
Enquiry : RTGS remains open for a period in ¡§Read only¡¨ state,
during which participants can send only enquiries to the System.
Archiving : RTGS moves the oldest business day data to archive for
storage.
System Stop : Connections are interrupted and BD-RTGS System is
physically stopped.

6.3 Operating hours


The RTGS operating hours are defined in Annex 3 to these Rules and may
be modified from time to time by BB in consultation with Participants.

BD-RTGS System Rules 19


7. FEES AND CHARGES

Initially, Bangladesh Bank will not charge any fees to participating banks for
BD-RTGS operation. BB, however, reserves the right to set transaction fees
and other charges which shall be notified to Participants before coming into
effect. Participating Banks, on the other hand, may choose to charge fees
(which may be not more than Tk.100 per transaction) only from the Originator
of the transaction, however, no charge will be applicable if there is a govt.
entitiy involved (either as an Originator or as a Receiver) in the transaction.

Fees fixed by the Central Bank for the participants would usually follow the
criterias as under:

1. An annual membership fee ;


2. Per transaction fees, which may vary based on currencies and on the
basis of the timing of the transaction ; and
3. Penalties for infringement of Rules or any other penalties and/or
interest charges relating to RTGS operation as fixed by BB.

Charging will be calculated and posted to participants settlement account on


monthly basis and would be charged at the end of the month. However, the
membership fees are usually yearly and would be charged at the beginning
of the year.The Participant authorises BB to apply debits to its account for
fees/charges and any other penalties that come as a result of RTGS
operation by the Participant.

BD-RTGS operation cell will provide regular invoices giving details of all
charges and penalties to the corresponding Participant as soon as the debits
start being applied.

20 BD-RTGS System Rules


8. CONTINGENCY AND BUSINESS CONTINUITY

8.1 General obligations


A Contingency Event is an event which disrupts normal processing of RTGS
payments to the extent that contingency procedures are brought into effect.
Contingency events may arise to both BB and to the participants. In case the
event affects the central processing system, BB shall have the right in its sole
discretion to determine and warn Participants that a Contingency Event has
occurred. This may or may not include transfer of operations to the DR site
and/or to implement other available alternatives. In case of a technical failure
of a Participant compromising the generation or the reception of payment
messages through RTGS for more than one hour during the day, the
Participant shall immediately inform BB. If the situation continues, the
Participant may request BB to suspend its account. Account suspension
requires confirmation In writing at least from the DMD of that particular bank.
Lifting of such a suspension also requires confirmation In writing from the
same authority.

In case a Contingency Event may occur to the central system, BB shall have
the right, in its sole discretion, to switch the operation from DC to DR site and
inform the participants accordingly. In this case any payment that is queued
to the system may need to be deleted or ignored. Thus, participant(s) system
may need to cope with such contingencies while their system may also face
contingency event(s) and must be prepared for such situation(s).

8.2 failure of communication links


In case the connection of a Participant’s RTGS link to the VPN or to the
SWIFT network breaks down or an inability of participant(s) to access the
central system effectively which prevents the exchange of payment
instructions, The participant(s) should inform immediately to BB. In case of
communication link being failed, the Participant should also try to switch to
the redundant connection. If the Participant is still unable to send messages
to the System, it may:

1. Contact BB In Writing, requesting to assist in executing its most


important payments on its behalf via some web interface or other
available means ; and
2. Use facilities of other Participant (in the case participants agreed
among themselves to provide such services to each other).

In such a situation BB may decide to amend/extend the Daily Operating


Timetable for the current day in order to provide sufficient time for the
Participants to complete their work for that day, and will notify all Participants
accordingly.

BD-RTGS System Rules 21


8.3 Force majeure
There shall be no liability for non-compliance with these Rules to the extent
that, and for so long as, there is an inability to perform the obligations under
these Rules or these obligations are subject to suspension or delay, due to
the occurrence of an event arising from any reason or cause beyond
paticipant’s reasonable control, including, but not limited to, equipment failure
or malfunction, natural disasters, strikes and acts of war.

The foregoing shall not prejudice the responsibility of all parties to carry out
the error handling procedures and other technical operational measures such
as those described in section 8.1 (Contingency Event) in accordance with
these Rules, so far as possible, despite the Force Majeure Event, and to use
all reasonable efforts to mitigate the effects of any such event whilst it is
continuing.

8.4 conservation and archiving


All BD-RTGS Participants must comply with the laws and regulations
applicable in Bangladesh concerning the conservation and archiving of
documents as regards the support and the duration of the conservation.

For this purpose, all transactions and accounting data must be stored for a
period of six years from the date it get settled. All current transactions and
data for the previous six years should be accessible.

8.5 Audit Trail


BD-RTGS provides comprehensive audit trails, which can be made available
to Participants on request at BB’s discretion. BB system administrators are
able to examine all the activities carried out on the System, including
transaction and static data amendments. However, all participating bank’s
system should have similar types of audit trail functionality in their system. An
audit trail functionality includes but not limited to :

a) at application level, showing the path of transactions through the


System, the source of all changes to data in the system files and on
the databases and providing proof that all transactions received from
other system(s) have been processed. The data entry users and
approvers for all payment insructions are recorded and are visible on
the relevant screens ;
b) at Participant level, showing details of all transactions relating to a
particular Participant;
c) at User level, giving a record of all accesses to the System and the
actions of Users, keeping a record of actions by User and showing
which Users have taken action on any particular transaction. These
elements form part of the technical audit trail known as the system
log;

22 BD-RTGS System Rules


d) at technical level, providing a secure record of the technical
functioning of the System, recording access to system modules and
technical events in detail. This audit trail is referred to as the system
log.

The main audit tools, apart from standard reports, are as follows:

a) facility to list all transactions for RTGS from on-line history files within
the System for at least the previous Two years, from postings ;
b) facility to request from User defined reports for audit purposes based
on statistical and other tables in the database.

For Participants, BB audit trail data may be supplied, if required, only against
a written request signed by the chief exective of the bank.

BD-RTGS System Rules 23


9. ESTABLISHMENT AND MAINTENANCE OF USERS

9.1 General
Access to BD-RTGS System shall be permitted only to authorised and
uniquely identified personnel. Each person named in the user registration
form shall be an Authorised Personnel or the designee thereof duly
authorised to receive, transmit and/or confirm data and instructions within the
limits (if any). As long as BB acts in compliance with the communication and
data security methods as set forth in these Rules as these may be amended
from time to time in accordance with the Procedures in these Rules, it shall
have no further duty to verify the identity or authority of the person giving or
confirming, or the contents of, any instruction. Notwithstanding any other
provision hereof, BB shall have the right, in its sole discretion, to refuse to
execute any instruction, provided BB, acting in good faith, doubts the
authenticity or authorisation thereof. BB shall provide prompt notice, which
may be by telephone, to an Authorised Person of any such rejected
instruction.

BB shall be entitled to rely on the authorisations and User lists as set forth on
a User application form until receipt by BB, in normal circumstances at least
two Business Days prior to the effective date thereof, of a written request for
revocation or modification of such User application form, dated and signed by
an Authorised Person. In urgent cases such request for revocation or
modification may be made by e-mail or Authenticated Fax and will be
actioned by BB immediately on receipt.

A User application form may be revised only by a written request signed by


an Authorised Person and each such proposed revision is subject to BB’s
consent in accordance with the procedure. This section supersedes all prior
agreements or practices in respect of instructions and the Procedures may
not be changed by an oral agreement or by course of dealing or custom.

Each Participant will inform BB as soon as practicable if any person


authorised to utilise the Services on behalf of a Participant ceases to be
employed by that Participant or ceases otherwise to work for that Participant
or to be under its control.

9.2 Request to Create a User


Each Participant requesting the authorisation of a User shall, at least two
Business Days prior to the effective date thereof, complete and provide BB In
Writing with:

a) a User application form dated and signed by two Authorised Persons;


b) a User protocol as provided as part of the User application form in
Annex 4 to these rules, dated and signed by the relevant User ; and

24 BD-RTGS System Rules


c) in the case of the creation of an Authorising Officer, a RTGS User
profile request, dated and signed by two other Authorised Persons.

Only BB shall have the right, in its sole discretion, to authorise new
Participant Security Administrators and assign a User profile to such Users.

BB also has the sole right to:

a) allocate e-tokens; and


b) issue digital certificates to User (on the e-tokens).

Participants through their Security Administrators are responsible for the


creation and maintenance of their other Users in RTGS, allocation of User
names, User profiles and initial passwords.

Before a User can be registered, the User must complete RTGS User
training appropriate to the functions to be performed and if so requested
must demonstrate by passing a practical and/or theoretical test that he/she
has the necessary knowledge to use BD-RTGS System.

BB will provide one e-token with PIN to each registered User. Each e-token is
exclusive to the user to whom it is issued, and in no circumstances is it to be
shared with or used by another. When received by the registered User, the
token’s default password should immediately be changed.

9.3 Request to Modify a User


Only Participant Security Administrators can assign and amend User profiles
according to User responsibilities, required by Participants or by BB. Such
assignments and amendments will take place under dual control.

9.4 Request to Suspend or Delete a User


A Participant that requires one or more of its Users to be suspended or
deleted can carry out the deletion on-line, but must report to BB in Writing
that a User has been suspended or deleted.

In case of emergencies, BB Administrators can also suspend or remove


Users from RTGS.

9.5 maintaining user profile


BB RTGS Administrators allocate initial User profiles to Participants and may,
in the name and for the account of BB, set up and amend information about a
User, including the User profile, according to the information provided by
Participant administrators.

BD-RTGS System Rules 25


10. DISPUTE RESOLUTION

10.1 dispute resolution procedures


In case of a dispute between Participants, the respective rights and
obligations in relation to Payment Instructions processed through BD-RTGS,
and all other matters referred to in these Rules, shall be determined
according to the laws of Bangladesh. In case of operational error, questions
or differences whatsoever at any time, the Participants concerned shall sit
together in order to find an amicable settlement and take all necessary
measure to that effect. If Participants do not agree to find such an amicable
settlement, each Participant concerned shall request BB in writing 10
calendar days at the latest after the occurrence of the error or dispute, to
start a conciliation procedure in order to find a solution concerning the error
or the dispute, its consequences and damages. The Participants concerned
shall communicate to BB all necessary information and documentation to this
effect.

10.2 conciliation and arbitration procedures


Participants agree to submit any dispute concerning the interpretation or the
implementation of these Rules on which the parties have not been able to
find an amicable settlement within 10 calendar days of the original
transaction took place to an arbitration process as follows. Both the parties,
or any one party, may choose to go for conciliation and arbitration under
Bangladesh Bank’s management. Payment Systems Department of
Bangladesh Bank is responsible to make the conciliation or arbitration. The
process in brief is as follows:

BB will instruct the parties to submit documents related to the


disputed transaction;
BB will fix a date and hear from the parties and will give its verdict.

The aggrieved party, if any, with the verdict would be able to appeal to the
Executive director in charge of Payment Systems Department, BB against
the verdict within 7 (seven) calendar day. Separate officials may be assigned
to deal with the case and final verdict may be given by the General Manager,
Payment systems Department. The final verdict would have an immediate
effect and if the convicted party fail to pay the penalty (if any) in time, BB may
choose to deduct its settlement account and replenish the effected party.

26 BD-RTGS System Rules


11. AMENDMENT OF RULES

BB is responsible for the amendment of these Rules from time to time or the
Annexes hereto, or any additional documents containing, inter alia, technical
provisions and specifications for BD-RTGS. At any time Participants may
suggest amendments to BB which will consider them and may, in
consultation with other Participants, apply them as an amendment. Such
amendments and additional documents shall become effective as an integral
part of these Rules and be effective as per the date specified by BB. BB will
give notice to each Participant of any modification/amendment 30 calendar
days before its entry into force.

BD-RTGS System Rules 27


ANNEX 1 : SWIFT BIC CODES

Sl. Bank BIC


01. Bangladesh Bank BBHOBDDH

02. AB Bank Limited ABBLBDDH

03. Agrani Bank Limited AGBKBDDH

04. Al Arafah Islami Bank ALARBDDH

05. Bangladesh Commerce Bank Ltd. BCBLBDDH

06. Bangladesh Development Bank Ltd. BDDBBDDH

07. Bangladesh Krishi Bank BKBABDDH

08. Bank Alfalah Ltd. ALFHBDDH

09. Bank Asia Limited BALBBDDH

10. BASIC Bank Limited BKSIBDDH

11. BRAC Bank Ltd. BRAKBDDH

12. CitiBank N.A. CITIBDDX

13. Commercial Bank of Ceylon CCEYBDDH

14. Dhaka Bank Limited DHBLBDDH

15. Dutch-Bangla Bank Limited DBBLBDDH

16. Eastern Bank Limited EBLDBDDH

17. EXIM Bank Ltd. EXBKBDDH

18. First Security Islami Bank FSEBBDDH

19. Habib Bank Limited HABBBDDH

20. HSBC HSBCBDDH

21. ICB Islami Bank BBSHBDDH

22. IFIC Bank IFICBDDH

23. Islami Bank Bangladesh Limited IBBLBDDH

24. Jamuna Bank Limited JAMUBDDH

25. Janata Bank Limited JANBBDDH

26. Meghna Bank Ltd. MGBLBDDH

27. Mercantile Bank Limited MBLBBDDH

28. Midland Bank Ltd. MDBLBDDH

29. Modhumoti Bank Limited MODHBDDH

28 BD-RTGS System Rules


Sl. Bank BIC
30. Mutual Trust Bank MTBLBDDH

31. National Bank Limited NBLBBDDH

32. National Bank of Pakistan NBPABDDH

33. NCC Bank Ltd. NCCLBDDH

34. NRB Bank Ltd. NRBDBDDH

35. NRB Commercial Bank Ltd. NRBBBDDH


36. NRB Global Bank Ltd. NGBLBDDH

37. One Bank Ltd. ONEBBDDH

38. Prime Bank Ltd. PRBLBDDH

39. Pubali Bank Ltd. PUBABDDH

40. Rajshahi Krishi Unnayan Bank

41. Rupali Bank Ltd. RUPBBDDH

42. SBAC Bank Ltd. SBACBDDH

43. Shahjalal Islami Bank SJBLBDDH

44. Social Islami Bank Ltd. SOIVBDDH

45. Sonali Bank Limited BSONBDDH

46. Southeast Bank Ltd. SEBDBDDH

47. Standard Chartered Bank SCBLBDDX

48. Standard Bank Ltd. SDBLBDDH

49. State Bank of India SBINBDDH

50. The City Bank Ltd. CIBLBDDH

51. The Farmer's Bank Ltd FRMSBDDH

52. The Premier Bank Ltd. PRMRBDDH

53. Trust Bank Ltd. TTBLBDDH

54. Union Bank Ltd. UBLDBDDH

55. United Commercial Bank Ltd. UCBLBDDH

56. Uttara Bank Ltd. UTBLBDDH

57. Woori Bank HVBKBDDH

BD-RTGS System Rules 29


ANNEX 2: PARTICIPATION AGREEMENT
(On Taka 300 Non-Judicial Stamp)
Bangladesh Real Time Gross Settlement System Participation Agrrement

In consideration of the undersigned being admitted as a participating Banking


Company in the Bangladesh Real Time Gross Settlement (BD-RTGS)
System, as a facility to operate an interbank electronic real time funds
settlement services within the country for both local and designated foreign
currencies, and of the mutual indemnification of the understanding by each
other of BD-RTGS System: the undersigned, which intends to act as a
participating banking company of RTGS, hereby agrees with the Bangladesh
Bank, and with other participating banking company :

1 to comply with and be subject to the BD-RTGS System Rules


(collectively referred to as the 'BD-RTGS Rules') including
descriptive requirements, as in effect from time to time ;
2 to make all payments required by the BD-RTGS Rules including fees
and charges set by BB time to time ;
3 not to effect adversely the operation of the System by compromising
the integrity of payment instructions sent to the BD-RTGS System ;
4 to indemnify and hold harmless the Bangladesh Bank and other
participating banking company from any and all costs, charges,
claims, demands, expenses (including costs of investigation and
attorneys' fees and expenses of litigation), losses, liabilities,
damages, judgements, fines, penalties, interest and amount paid in
settlement arising from any failure on the part of the undersigned to
exercise ordinary care or to comply with any of the provisions of the
BD-RTGS Rules.

This agreement shall governed by and construed in accordance with the laws
of the People's Republic of Bangladesh. The undersigned and the
Bangladesh Bank submit to the exclusive jurisdiction of the court of the
People's Republic of Bangladesh.

This agreement shall inure to the benefit of the Bangladesh Bank and shall
be binding on the undersigned and its successors and assigns, except no
Participating Banking Company may transfer or assign its rights or
obligations hereunder except as expressly provided in the BD-RTGS Rules.

Date : (Participating banking Company)

Accepted this ............day of ......./....... (Signature of the Chief Executive)


Bangladesh Bank

Authorized Signatory (Name)

30 BD-RTGS System Rules


ANNEX 3: DAILY OPERATING TIMETABLE

Time Event Activities


From 09:00 to System Start The System is open in offline mode for
09:15 Hrs testing of connections.

From 09:16 to Account BB Housekeeping period ; and


10:00 Hrs Housekeeping Balance transferred from participants
current (CBS) account to RTGS
Settlement account.

From 10:01 to Morning Exchange Participants exchange payments ; and


12:00 Hrs Period DNS Files received from BACH/NPSB

From 12:01 to Afternoon Exchange Participants exchange payments ; and


16:00 Hrs Period DNS Files received from BACH/NPSB

From 16:01 to Evening Exchange BB System Administrators may launch


16:05 Hrs Period (First Cut-off) Gridlock Resolution ;
Unsettled payments are cancelled at
the end of this period.

From 16:06 to ILF Reversal Period ILF reversals are carried out ; and
16:30 Hrs Partial ILF returns ."

From 16:31 to Evening Administration Participant statements are generated ;


17:30 Hrs Period (Final Cut-off) Participants may make enquiries and
download reports for reconciliation
purposes ;
Residual balance in the BD-RTGS
account would be transferred to BB
current account ; and
RTGS moves oldest business day
data to archive storage.

From 17:31 to Close-Down Period RTGS remains open in read-only mode


17:59 Hrs (End of Day) for Participant enquiries

18:00 Hrs System Stop System Shut Down

BD-RTGS System Rules 31


ANNEX 4: TRANSACTION TYPE CODES

TTC Code TTC Type


000 System Operation
001 Ordinary transfer
002 Cash Withdrawal
003 Cash Deposit
004 Outgoing foreign transfers
005 Incoming foreign transfers
006 DVP Operation
007 ILF operations
008 Securities Trading Operations
009 Decrease Reserve
010 Coverage net debit positions
011 Clearing transaction from clearing system
012 Clearing Transaction for Clearing system
013 General Ledger transaction
014 Return transaction
015 ILF redemption
016 Collection of fees
017 Collection of penalties
018 Interbank REPO
019 Interbank REPO BuyBack
020 ILF return on behalf of other participant
030 Direct Debit
031 Goverment Payments
040 Excise and VAT authority of National Board of Revenue Opertions
041 Customs Operations

32 BD-RTGS System Rules


ANNEX 5: GUIDELINES OF INTRADAY LIQUIDITY FACILITY

To facilitate the expeditious settlement of payment transactions in the Real


Time Gross Settlement (RTGS) system Bangladesh Bank (BB) will allow
participant banks in the RTGS system to avail Intraday Liquidity Facility (ILF)
for a very short maturity during the operational hours of RTGS.

The operating instructions of ILF are given below:

1 BB will provide Intraday Liquidity Facility (ILF) to participant banks in


the RTGS system for their temporary liquidity needs to settle
payment transactions in the RTGS system. Banks will avail ILF only
on intraday basis and will have to repay the full amount of ILF on the
same day on or before the time specified by the BB.
2 Banks shall enter into an ILF agreement with BB in the prescribed
form to avail ILF. Banks shall comply with the terms and conditions
and operating instructions of ILF that are issued by BB from time to
time.
3 ILF will be provided in the form of intra-day REPO transaction
mechanism against Bangladesh Government Treasury Bonds
(BGTB), Treasury Bills and Bangladesh Bank Bills. BB, at its sole
discretion may change the types of eligible securities accepted for
ILF.
4 The value of eligible securities applied for ILF shall be determined in
terms of the market value of the security less the haircut as set out
below:

Eligible Securities Applicable haircut Amount


BGTB 5% Market value of BGTB x(15%
of Market value of BGTB)
Treasury Bill 10% Market value of TB x(1- 10%
of Market value)
Bangladesh Bank Bill 10% Market value of BB Bill x
(1-10% of Market value)

BB may change the valuation methodology and the applicable haircuts from
time to time at its sole discretion.

5. BB shall provide ILF only to the extent of the value as determined


according to clause 4 above. At the time of reversal participant banks
shall repay the ILF amount in full.
6. BB will not charge any fee/commission or interest for ILF. BB
however reserves the right to levy charges on participant of RTGS
for using ILF.

BD-RTGS System Rules 33


7. Banks will not be permitted to replace the securities against which
ILF is provided; but banks may repurchase the whole or part of those
securities by refunding the funds borrowed under ILF fully or partially.
8. The ILF shall be available only on the business days and during the
operating hours of RTGS. The availability of the facility and the cut-
off time for liquidity reversal are set out in the table below:

Opening From 9.00 AM Transfer of securities and funds to the ILF


of system to 9:45 AM designated securities account in MI Module and
settlement account of RTGS system respectively.

Operating From 10.00 AM ILF shall be available during the operating hours of
hour to 4.00 PM RTGS system.

ILF Reversal From 4.00 PM This allows inter bank transactions to settle Bank's
Session to 4.30 PM accounts of RTGS system.

Liquidity From 4.30 PM The balance of settlement account will be zero by


Reversal to 5:00 PM transferring the balances of settlement account of
Session RTGS system to the current accounts of respective
banks.

BB can change the time stated above at its sole discretion.

9. Banks shall transfer sufficient amount of eligible securities from their


own respective portfolios to their designated ILF securities account in
the MI Module within the stipulated time (before the operating hours
start) against which they are willing to avail ILF. When they will not
have enough funds for settlement of any transactions in RTGS
system the ILF will be generated automatically against the securities
held in their ILF securities account in the MI Module.

10. Whenever the balances of securities of a particular participant bank


have been exhausted in the ILF designated securities account, the
MI system will notify the participant bank of the same. The participant
bank should immediately transfer sufficient amount of securities from
their respective securities account to the ILF designated securities
account on a Priority basis, in order to pending payment transactions
in the queue to be settled after availing ILF from BB.

11. ILF reversal should be treated as most important event by the bank.
Outstanding balance of ILF should be settled by the banks within the
specified time for ILF reversal session. Banks should ensure the
availability of sufficient funds in their settlement account in the RTGS
system within the specified time. If the bank fails to pay off in full of
the outstanding amount of ILF at the end of the day, the bank shall
be deemed as defaulter for the full amount of outstanding and the
ILF will be converted to overnight Repo with BB. In such case, the
Bank will pay the interest twice of the prevailing Repo rate to BB.

34 BD-RTGS System Rules


12. On the next business day, the bank shall repurchase the securities by
paying the value stated in column-4 plus interest within two hours of
RTGS operating hours beginning. The bank shall not be permitted by
BB to avail ILF until the repurchase is completed. If such instance of
default repeated within 6 months BB may suspend the bank from
availing ILF.

13. When a bank fails to repurchase the securities within the specified
time on the next day, the securities against which ILF has been
availed shall be transferred to the holdings of BB. Further, BB shall
have the right to debit or credit the current account of the bank if any
deficit or excess amount arises after payment of interest, penalties
and from change of market value of the securities concerned.

14. In such cases of default BB may impose additional penalties or


suspend the bank from participating in the RTGS System and also
take other measures as appropriate.

15. Banks shall inform BB about their failure to repay the ILF amount
within the ILF reversal session.

16. BB reserves the right to immediately suspend or terminate the facility.

17. BB also reserves the right to amend this regulation by deleting,


substituting or adding any of the clauses from time to time or at any
time.

BD-RTGS System Rules 35


ANNEX 6: GUIDELINES OF INTRADAY LIQUIDITY FACILITY
FOR ISLAMIC SHARIAH BASED BANKS

Bangladesh Bank will provide Intraday Liquidity Facility (ILF) to participant


Islamic banks in the Real Time Gross Settlement (RTGS) system for their
temporary liquidity needs to settle payment transactions in the RTGS system.

The operating instructions of ILF are given below:

1 BB will provide ILF to the participant Islamic banks in the RTGS


system against Bangladesh Government Islami Investment Bond
(BGIIB) or other bonds issued by the Government and BB based on
Islamic Shariah principles.
2 Islamic banks shall enter into an ILF agreement with BB in the
prescribed form to avail ILF. Banks shall comply with the terms and
conditions and operating instructions of ILF that are issued by BB
from time to time.
3 Islamic banks will avail ILF only on intraday basis and will have to
repay the full amount of ILF on the same day on or before the time
specified by the BB.
4 The value of eligible securities applied for ILF of Islamic banks will be
determined in accordance with the face value of eligible securities
less the haircut equal to 15% of face value. On reversal Islamic
banks will return the exact amount borrowed under ILF.
5 The ILF shall be available only on the business days and during the
operating hours of RTGS. The availability of the facility and the cut-
off time for liquidity reversal are set out in the table below:

Opening From 9.00 AM Transfer of securities and funds to the ILF


of system to 9:45 AM designated securities account in Islami Bond
System (IBS) and settlement account of RTGS
system respectively.

Operating From 10.00 AM ILF shall be available .


hour to 4.00 PM

ILF Reversal From 4.00 PM This allows inter bank transactions to settle bank's
Session to 4.30 PM accounts of RTGS system.

Liquidity From 4.30 PM The balance of settlement account will be zero by


Reversal to 5:00 PM transferring the balances of settlement account of
Session RTGS system to the current accounts of respective
banks.

BB can change the time stated above at its sole discretion.

6. Islamic banks shall transfer sufficient amount of eligible securities


from their own respective portfolios to their designated ILF securities

36 BD-RTGS System Rules


account in the IBS within the stipulated time (before the operating
hours start) against which they are willing to avail ILF. When they will
not have enough funds for settlement of any transactions in RTGS
system the ILF will be generated automatically against the securities
held in their ILF securities account in the IBS.
7. Whenever the balances of securities of a particular participant bank
have been exhausted in the ILF designated securities account, the
IBS system will notify the participant bank of the same. The
participant bank should immediately transfer sufficient amount of
securities from their respective securities account to the ILF
designated securities account on a Priority basis, in order for the
pending payment transactions in the queue to be settled after
availing ILF from BB.
8. Outstanding balance of ILF should be settled by the banks within the
specified time for ILF reversal session. Banks should ensure the
availability of sufficient funds in their settlement account in the RTGS
system within the specified time. If the bank fails to pay off in full of
the outstanding amount of ILF at the end of the day, the bank shall
be deemed as defaulter and the full outstanding amount of ILF shall
be extended for overnight and BB shall charge a penalty of 40 taka
for outstanding amount less than or equal to taka one lac and
multiples thereof.
9. On the next business day, the Islamic bank shall release the
securities by paying the full amount borrowed under ILF plus penalty
within two hours of RTGS operating hours begin. The bank shall not
be permitted by BB to avail ILF until this transaction is completed. If
such instance of default repeated within 6 months BB may suspend
the bank from availing ILF.
10. When a bank fails to repay the borrowed amount within the specified
time on the next business day, BB will buy the securities against
which ILF has been availed. Further, BB shall have the right to debit
or credit the current account of the bank if any deficit or excess
amount arises for buying securities or payment of penalties.
11. In such cases of default BB may impose additional penalties or
suspend the bank from participating in the RTGS System and also
take other measures as appropriate.
12. Banks shall inform BB about their failure to repay the ILF amount
within the ILF reversal session.
13. BB reserves the right to immediately suspend or terminate the facility.
14. BB also reserves the right to amend this regulation by deleting,
substituting or adding any of the clauses from time to time or at any
time.

BD-RTGS System Rules 37


GLOSSARY OF TERMS

Short
Full Name Explanation/Definition
Name
Acceptance The moment at which an BD-RTGS Payment becomes
(for settlement) irrevocable as far as the Originating Bank is
concerned. This is the point at which a transaction
passes the tests to determine whether there is
sufficient fund Collateral for the transaction to proceed.

ARM Access Right A system workplace to enable authorised persons to


Work place Manager control the rights to perform actions in BB-RTGS
workplace (operated by BB System Administrators).

Administrator Authorised BB official(s) involved in the administration


of RTGS and its component modules.

A sequential record of events having occurred in the


BD-RTGS containing detailed information to assist
Audit Trail subsequent incident analysis. Participants can view the
audit trail of their own transactions. Only BB can view
the full audit report.

Authentication The methods used to verify the origin of a message or


to verify the identity of a Participant connected to the
system. See also Digital Certificate & Digital Signature.

Person duly authorised by all necessary action to


access data and to provide payment instructions
Authorised and/or person designated to access such data and to
Person provide instructions, on behalf of the Participant in
connection with the Services and the limitations, if any,
upon such authority.

Available Balance The balance of the Settlement Account


Or Available Funds

The process of keeping off-site mirrored copies of


essential system files, including the RTGS database, to
Back-up ensure that the System can be recovered within the
timeframes specified in the event of the main
production system failing or other disaster occurring.
Also used to refer to the copy files.

Bangladesh A Clearing House which carries out cheque truncation


BACPS Automated Cheque and electronic cheque presentment for all cheques in
Processsing System Bangladesh.

BB Bangladesh Bank The central bank of Bangladesh and operator of


RTGS.

Bangladesh Bank Bangladesh Bank Bill Short-term securities issued by


Bills BB.

Bangladesh A Clearing House which carries out the distribution and


BEFTN Electronic Funds settlement of electronic credit and debit instructions
Transfer Network among all participating banks.

38 BD-RTGS System Rules


Short
Full Name Explanation/Definition
Name
BGIIB Bangladesh Government Shariah-compliant investment bonds issued
Islami Investment Bonds by the Government of Bangladesh.

BGTB Bangladesh Government Long-term securities issued by the


Treasury Bonds Government of Bangladesh.

BDT Bangladesh Taka The legal currency of Bangladesh.

A unique address that identifies precisely the


financial institutions involved in international
financial transactions using the SWIFT
network. BICs are used in RTGS for
BIC Bank Identifier Code identification of bank. A BIC consists of eight
characters comprising the following
components: Bank Code (4), Country (2)
Code and Location Code (2). BICs are
allocated and managed by SWIFT.

Beneficiary The recipient of a payment (The Receiver).

A BB-only action taken via a RTGS menu


Block function which prevents a specific Bank/Bank
Branch from sending and/ or receiving
payment messages to/from the System.

An arrangement that aims to ensure that the


system is able to operate normally even if
Business Continuity one or more components of the System fail or
if it is affected by an abnormal external event.
Include both preventative measures and
arrangements to deal with contingencies.

Business Day A day on which BD-RTGS is operating to


process payments.

The computer system that handles all


CBS Core Banking Solution banking activities of a bank centrally in real-
time basis.

CRR Cash Reserve The amount of reserve funds that a


Requirement Participant is required to deposit with BB
against its deposit holdings.

BD-RTGS System Rules 39


Short
Full Name Explanation/Definition
Name
A service or system for the clearing, netting
and settlement of files of 'retail payments' each
of which is ideally required to provide their net
settlement files (DNS Files) to RTGS for
settlement. Current Clearing Houses operating
in Bangladesh are:
the Bangladesh Electronic Funds Transfer
Clearing House Network (BEFTN);
the Bangladesh Automated Cheque
Processing System (BACPS);
the National Payment Switch Bangladesh
(NPSB).
Other Clearing Houses may be established in
future and will be required to effect DNS
through RTGS in the same way as the
established Clearing Houses.

Is a borrower's pledge of specific property to a


Collateral lender, to secure repayment of a loan. The
collateral serves as protection for the lender
against a borrower's default.

Processing, communications or other failure of


a technical nature; Inaccessibility (total or
partial) to facilities by means of which
Constraining Event payments are sent and received; or
Manifestation of industrial action, which affects,
or may affect, the ability of any Participant to
participate to the normal and usual extent in
sending and receiving payments.

Contingency Event Any Constraining Event or any other event or


circumstance specified by BB.

Cut-off A designated time beyond which certain


functions cannot be performed.

A system workplace enabling authorised BB


DBO Database Back personnel to work with system data, e.g. for
Work place Office Workplace managing Users, changing access rights,
managing the daily timetable, etc. (operated by
BB System Administrators).

A bilateral or multilateral net settlement system


DNS Deferred Net where settlement takes place on a net basis,
Settlement System after a pre-fixed cutoff time and usually with
multiple transactions.

A file containing the net positions (credit or


debit) of all participants in a Clearing system,
DNS File which is produced following a DNS session in a
Clearing system. The credits and debits in
each DNS File must net out to zero.

40 BD-RTGS System Rules


Short
Full Name Explanation/Definition
Name
Mechanism used in securities transfer transactions,
Delivery versus which ensures that the final transfer of ownership of
DvP Payment the securities (the delivery) can be considered
completed only if the value for the transaction (the
payment) has been made.

An encrypted text, which enables devices such as


Digital electronic tokens to be authenticated by the System
Certificate and system components to authenticate each other,
using PKI methods.

A string of data generated by a cryptographic method


Digital that is attached to a message to ensure its
Signature authenticity as well as to protect the recipient against
repudiation by the sender.

EOD End of Day End of the Business Day for RTGS.

EUR Euro Common currency for the sigle European payments


area

Fallback Documented contingency arrangements to be initiated


in the event of a failure or disruption of service.

Time at which RTGS cuts off processing of


FCO Final Cut-off transactions and cancels any queued Payment
transactions for the value of the day.

A term frequently used in contracts to describe a


Force Majeure situation in which a party is unable to carry out its
contractual obligations due to circumstances outside
its control.

FX Foreign Exchange Any currency other than BDT.

BB's General ledger in which BB's accounts, including


GL General Ledger those it holds for the banks, are held, usually its Core
Banking Solution.

Government Securities Securities issued by the Government of Bangladesh.

A situation that can arise in a funds transfer system in


which the failure of some transfer instructions to be
Gridlock executed (due to insufficient funds) prevents fulfilment
of a substantial number of instructions given by other
Participants.

Gridlock Act of resolving Gridlock within the Payment Queues


Resolution without overdrawing the accounts involved.

Gross The Settlement of funds, which is effected individually


Settlement on an order-by-order basis, i.e. without netting debit
against credit payment transfers.

BD-RTGS System Rules 41


Short
Full Name Explanation/Definition
Name
(i) On paper, signed by an authorised officer of the
In Writing sender; or (ii) by e-mail from authenticated source ; or
(iii) by Authenticated Faxes or by SWIFT message
type camt.998.

IT Information Computer and communication infrastructure used for


Technology RTGS operation.

Any collective measure provided for in the law of


Bangladesh, either to wind up the Participant or to
reorganise it, when such measure involves the
Insolvency Event suspension of, or the imposition of limitations on,
transfers or payments, such as an adjudication order,
a request for composition, extension or suspension of
payment, moratorium, liquidation and other similar
judicial procedures.

The common boundary between two functional


elements, logical or between two physical devices that
Interface is defined by its functional characteristics, common
physical characteristics of the link between them,
signal or other characteristics.

A worldwide federation of national standards bodies


International from some 140 countries. The mission of ISO is to
ISO Organisation for promote the development of standardisation in order
Standardisation to facilitate the international exchange of goods and
services.

Intraday Liquidity Credit extended by BB to a Participant for a period of


ILF Facility time that is less than one Business Day for the
purpose of providing liquidity to the Participant.

An account in RTGS which is used to hold the status


ILF Account of a Participant's usage of ILF. Each Participant has
one ILF Account in BDT only, which is tied to its BDT
Settlement Account.

Islami Bond An electronic system which manages the issuing,


IBS System custody and redemption of Bangladesh Government
Islami Investment Bonds (BGIIB).

The measure of a Participant's ability to meet its


current obligations in respect of funds transfer. In the
context of RTGS, this comprises four components:
available funds (balance) on the Settlement Account
Liquidity transferred from the reserve account, queued
payment transfers from other Participants to its
account, credits extended by the central bank via the
ILF and funds from interbank money market
transactions.

42 BD-RTGS System Rules


Short
Full Name Explanation/Definition
Name
Local Area A computer network that spans a relatively small
LAN Network area, generally confined to a single building or group
of buildings.

Market An electronic system which manages the issuing,


MI Infrastructure custody and payments for Bangladesh Government
module Treasury Bonds (BGTB), Treasury Bills and
Bangladesh Bank Bills.

Materials These Rules and each related Annex and


attachment thereto and hereto, supplemented by
User Manuals, data, processes and other
documentation provided by BB.

MOF Ministry of Finance Manager of the Government's accounts and


payments.

A workstation which is used by Participants for


Transaction monitoring their activities in online mode. It allows
TMON Monitoring the Participant to view static and dynamic data such
Workplace as messages and payment documents flows,
accounts and their balances, participants and users
information.

NBR National Board The national taxation authority.


of Revenue

A Clearing House operated by BB which facilitates


National Payment interbank electronic payments originating from
NPSB Switch Bangladesh different channels including Automated Teller
Machines (ATM), Point of Sale (POS) terminals,
Internet banking, mobile devices etc.

An agreed offsetting of obligations between two or


Netting more parties or Participants in which a greater
number of obligations is reduced to a smaller
number of obligations.

Operational hours The system day of RTGS, which is defined through a


number of operating 'windows'.

OB Originating Bank Bank which sends payment instructions to BD-RTGS

Originator Person or organisation initiating a Payment


Instruction to the System through an OB

A member of the RTGS system, including its


Participant operator (BB).

A credit transaction against a Participant's


Participant Credit Settlement Account which is made by BB rather than
initiated by another Participant. A Participant Credit
always debits BB.

BD-RTGS System Rules 43


Short
Full Name Explanation/Definition
Name
A debit transaction against a Participant's Settlement
Participant Debit Account which is made by BB (e.g. for repayment of an
overnight or other loan or debiting RTGS usage fees). A
Participant Debit always credits BB.

A transfer of funds which is made by BB on behalf of one


Participant Participant's Settlement Account to another's (e.g. in the
Transfer event that the sending Participant loses connectivity to
RTGS).

Payment A payer's transfer to a payee within RTGS against the


payee's monetary claim.

Payment Instruction An order or message requesting the transfer of funds.

A set of data transferred via an electronic mechanism


Payment which specifies the payer and payee of the transaction,
Message the amount to transfer and the value date, and which
enables the settlement of the transaction between
Participants in a Payment System.

Payment A mechanism in a foreign exchange settlement system


PvP versus which ensures that a final transfer of one currency occurs
Payment if and only if a final transfer of the other currency or
currencies takes place.

A delivery of property to secure the performance of an


Pledge obligation owned by one party (debtor/pledger) to another
(secured party/pledgee). A pledge creates a security
interest in the property so delivered.

Primary Site The RTGS principal operating site (Data Centre - DC).

A numeric value between 1 and 99 which RTGS uses as


Priority or a factor in determining the sequence in which it executes
Priority Code Payment Instructions. Priorities 1 to 6 inclusive are
reserved for use by RTGS and BB.

Procedures The activities and the methods designated in these


Rules.

A method for securing access and information transfer


based on the use of Public and Private keys. Allows for
PKI Public Key data encryption, server authentication, message integrity,
Infrastructure and client authentication for connections between the
user's browser and the application server. Can be used to
achieve non-repudiation of transactions.

A queue in which RTGS Payment Instructions, which are


not settled due to a lack of funds, are held for settlement
Queue until either sufficient funds are put into the OB's
Settlement Account. There is one Queue per Participant
for each currency.

44 BD-RTGS System Rules


Short
Full Name Explanation/Definition
Name
The process whereby Payment Instructions are settled by
RTGS Real-Time Gross debiting and crediting the involved Settlement Accounts
Settlement immediately (in real time) and individually (gross) with
finality and irrevocability.

Real-Time Gross The brand name for the software solution prepared by
RTS/X Settlement system CMA Small Systems AB of Sweden and is supplied to
solution developed Bangladesh Bank. Is the central RTGS processing and
by CMA settlement engine for BD-RTGS.

Receiver Person or organisation receiving a Payment Instruction


from the System.

RB Receiving Bank Bank where receiver maintains account with

An agreement in which money is advanced against


Repo Repurchase of securities with a change in beneficial ownership of the
Securities securities, on the basis that they will be bought back at
an agreed later time. This process may be automated.

An authorised person at BB or a Participant who has


SLA Security access to RTGS for the purpose of maintaining User
Administrator details and the Profiles of User in RTGS. A Security
Administrator cannot have access to RTGS payment
entry, management and enquiry functions.

Service Level A contractual document signed between the user of the


Agreement system and with the vendor/developer/service provider,
defining the operational service levels.

Services Means all functions provided or to be provided by BB to


Participants pursuant to these rules.

Settlement The process of debiting and crediting Participants'


Accounts with the central bank, such that the payment is
final and irrevocable after the Accounts of the relevant
Participants have been credited and debited.

Settlement The account held by each Participant with BD-RTGS


Account System for the settlement of transactions between
Participants. Each Participant has one Settlement
Account per currency.

Settlement The system in which the settlement operation takes


System place.

Shared Payment A web-based central service through which Participants


Gateway can send limited numbers of Payment Instructions to BD-
RTGS System.

Society for Worldwide International institution owned by its members which


SWIFT Interbank Financial enables electronic messages to be sent securely
Telecommunication between financial institutions.

BD-RTGS System Rules 45


Short
Full Name Explanation/Definition
Name
STP Straight Through The connection of one computer system to
Processing another to enable automatic exchange of
information.

System, or the System The RTGS system which is the subject of these
Rules.

System Administrator The person appointed by BB to supervise the


operation of RTGS.

System Operator Bangladesh Bank as the operator of BD-RTGS


System.

Technical Acceptance The point at which RTGS has validated the


format of an incoming message.

Technical Operator Bangladesh Bank as the operator of BD-RTGS


System.

TTC Transaction Type Code A Code to identify certain types of payment


instructions and how they should be processed.
TTCs are listed in Annex 4.

Treasury Bills Short-term securities issued by the Government


of Bangladesh.

USD United States Dollar The legal currency of the United States of
America.

User An Authorised Person who has access to BD-


RTGS System.

User Manual/ Guides Documentation defining how to use RTGS.

User Profile The collection of attributes which define a User.

Value Date/Value Day The Business Day on which the amount of a


successful Payment Instruction will be at the
disposal of the receiving Participant (payee) or
its client.

VPN Virtual Private Network A dedicated telecommunications network


connecting Participants to BD-RTGS System.

46 BD-RTGS System Rules


Published by F. M. Mokammel Huq, General Manager, Department of Communications
and Publications, Bangladesh Bank, Head Office, Motijheel, Dhaka-1000, Bangladesh.
website : www.bb.org.bd, Printed by Dhew Communications, Moghbazar, Dhaka-1217.

DCP : 01-2016-2,000

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