Bangladesh Real Time Gross Settlement (BD-RTGS) System Rules
Bangladesh Real Time Gross Settlement (BD-RTGS) System Rules
Bangladesh Real Time Gross Settlement (BD-RTGS) System Rules
Bangladesh Bank
Bangladesh Real Time Gross Settlement
(BD-RTGS) System Rules
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
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
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:
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.
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).
Originating Receiving
Originator BD-RTGS Receiver
Bank Bank
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:
Both payment requests and queries will result into outgoing messages
includes notification about related event happening in the system.
MT195/STAT or
camt.005 Request for a status of transfer ParticipantJRTS/X
MT295/STAT
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.
1 Exceptional Priority
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.
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.
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):
07 XR 07 Account Frozen
08 XR 08 Non-Transaction Account
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.
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.
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.
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).
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:
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.
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).
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.
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.
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.
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.
Only BB shall have the right, in its sole discretion, to authorise new
Participant Security Administrators and assign a User profile to such Users.
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.
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.
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.
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.
From 16:06 to ILF Reversal Period ILF reversals are carried out ; and
16:30 Hrs Partial ILF returns ."
BB may change the valuation methodology and the applicable haircuts from
time to time at its sole discretion.
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.
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.
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.
15. Banks shall inform BB about their failure to repay the ILF amount
within the ILF reversal session.
ILF Reversal From 4.00 PM This allows inter bank transactions to settle bank's
Session to 4.30 PM accounts of RTGS system.
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.
Primary Site The RTGS principal operating site (Data Centre - DC).
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.
System, or the System The RTGS system which is the subject of these
Rules.
USD United States Dollar The legal currency of the United States of
America.
DCP : 01-2016-2,000