The new approach envisages a netting on a country wide basis. The new system will require NIFT to collect nets from all automated centers and provide a consolidated net to SBP-BSC Karachi for settlement. Thus the countrywide net position will be debited / credited to banks’ current accounts in Karachi. While the net figure in the composite net for each bank will be arrived at by making a logical sum of debit and credit positions of that bank in fifteen cities, the position for each of the SBP branches in these cities will be reported separately. Each product and its return will be consolidated separately and hence there will six net positions: Main Clearing – Inward Sameday Clearing – Inward Intercity Clearing – Inward Main Clearing – Returns Sameday Clearing – Returns Intercity Clearing – Returns Other operations in the local current accounts of banks with SBP will remain unchanged.

The branch clearing system will remain unaffected. Branches will receive the same set of reports There will be no change in the existing services and procedures. Bank branches will be able to access reports through an optional web service; this will provide a number of advantages like reliability and quicker availability of information, data and images – branches can offer prompt service to their clients with lesser turn around times. There could be a change in the inter-branch accounting procedure.

A new inter-branch methodology (for cities outside Karachi) would have to be evolved at each bank. The out-city branches may either route their entries through the local main branch (existing procedure) or all branches will route entries directly to the main branch at Karachi. If out-city branches are routing entries through the local main branch, the local main branch will route the consolidated position to the main branch at Karachi. Single out-city branches will route their entries through to the main branch at Karachi NIFT will continue to provide main branch reports at various cities for control and reconciliation purposes.

SBP centers will NOT post local NET entries into the Banks’ current account for settlement. NIFT will continue to provide all existing reports to SBP centers for control and help in reconciliation The individual position of each SBP centre will be depicted separately in the consolidated net sent to RTGS

NIFT will manage the consolidation process and furnish composite nets to RTGS at Karachi. Electronic reports depicting the consolidation process will be provided to banks on the web. NIFT will extend optional advice printing facilities to all banks (four major banks are already utilizing this facility). Advance electronic information will be made available to Treasury / Funds management departments through the web.

Currently the Intercity netting procedure is implemented over two days. This process will be streamlined to support systematic preparation of consolidated net position for RTGS. The debit (in the city of payment) will now coincide with the credit contra entry in the collection city through secure electronic intimation. NIFT will intimate the fate to collecting branches through secure web reports – The return instruments will be provided next day. The intercity clearing turnaround time will effectively be reduced to 24 hours

MANAGING CHANGE - RTGS IMPLEMENTATION PKI SECURED TRANSMISSION ADVANCE INFO TO TREASURY AND BRANCHES (WEB REPORTS) INFO AND SUPPORT FOR RECONCILIATION. ADVANCE ELECTRONIC DATA FOR INTERCITY NO SECOND NET FOR RECEIPTS OUTSIDE TIME WINDOW SIX CONSOLIDATED NETS SUBMITTED BY NIFT AT KARACHI RTGS MAIN INWARD SAMEDAY INWARD INTERCITY INWARD SAMEDAY RETURNS INTERCITY RETURNS MAIN RETURNS

RTGS SBP CENTRES BANK’S TREASURY BANK’S REGIONS / BRANCHES CLEARING INFO, REGIONAL CONTROL & RECONCILATION CLEARING INFO, REGIONAL CONTROL & RECONCILATION BANK’S POSITION & REGIONAL DATA ELECTRONIC DELIVERY OF NETS & CONSOLIDATION

COUNTRYWIDE CONNECTIVITY PROMPT DELIVERY ACCESS TO IMAGES ACCESS TO PAST DATA LOW COST / EASILY ADAPTABLE SOLUTION RTGS SBP CENTRES BANK’S TREASURY BANK’S REGIONS / BRANCHES

All clearing based reports provided on a tiered basis: 1.Individual Branch - Transfer Scrolls 2.Main Branches in cities - Sub-Book for its branches in given city 3.Main Clearing Deptt. - Sub-Book for its branches in 15 cities 4.Treasury – SCOREBOARD, Sub-Book for its branches in every city 5.SBP BRANCHES –Sub-Book for its branches in that city 6.RTGS – CONSOLIDATED SCOREBOARD, all Sub- Books ALL REPORTS ARE DIGITALLY SIGNED PDF DOCUMENTS, THESE WILL BE RETAINED ON THE SYSTEM FOR A PERIOD OF 3 MONTHS

System hosted on verisign ssl based server User signs in with Class II Digital Certificates on USB Tokens (Active Key) to access the site Besides Electronic Reports The system offers other auxiliary services User operational rights imbedded in the system, each digital certificate identifies users access according THE FOLLOWING SLIDES ILLUSTRATE BASIC FEATURES OF THE SYSTEM (USER RTGS)

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