Tomcat
Professional
- Messages
- 2,687
- Reaction score
- 1,026
- Points
- 113
In Russia, the system of gross settlements, centralized at the federal level and intended for making urgent non-cash payments in real time, is the BESP system (system of bank electronic urgent payments). The Bank of Russia regulates, operates, monitors and supervises this system. He also pursues a policy to develop it, improve efficiency and ensure uninterrupted settlements. The procedure for BESP operation is regulated by the Bank of Russia Regulation No. 303-P dated April 25, 2007 "On the system of gross settlements in real time of the Bank of Russia" and Ordinance of the Bank of Russia dated April 25, 2007 No. 1822-U "On the procedure for making payments and making settlements in the real-time gross settlement system of the Bank of Russia”.
The need to develop such a system was caused by several reasons: the presence in Russia of different time zones (11 time zones) and the large territorial extent of the country, the lag in the field of new information developments. The BESP system began its work on December 21, 2007. It regularly makes urgent payments, mainly for large amounts. Among the urgent payments of BESP participants, there are payments related to the conduct of monetary policy, interbank payments, payments on behalf of customers of credit institutions - participants in the system.
Settlements in the BESP system are subdivisions of the Bank of Russia, including its settlement network (head settlement and cash centers, operational departments, branches, etc.), Russian credit institutions (and their branches) and other clients of the Bank of Russia that are not credit organizations.
The BESP system provides for two forms of participation for Bank of Russia clients: direct and associated. Credit institutions, which are direct participants in the system, have direct access to making payments (both their own and on behalf of customers) in real time in accordance with the uniform regulations throughout the country. They can use all the services available in the BESP system. Associated members have only indirect access to making payments in the BESP system through regional components and can use a limited set of services offered by the BESP system.
At the beginning of 2010, the number of participants in the BESP system reached 1158. In 2009, they made more than 63 thousand payments totaling 106.6 trillion rubles [Bank of Russia, 2010c].
The BESP system ensures the exchange of electronic payment messages (hereinafter - EPS) with the payment system of the Bank of Russia at the level of its territorial divisions. EPS is a payment order (credit transfer). It contains complete information about the payment and additional information required to process the payment.
It should be emphasized that the BESP system carries out gross settlements in real time, i.e. calculations are made continuously for each EPS during the trading day. The payment in the system is irrevocable - at the moment of debiting funds from the account of the BESP participant - the payer, and final - at the moment of crediting the funds to the account of the BESP participant - the recipient of the funds.
A payment in the system can be made immediately if a number of criteria are met:
If the EPS cannot be executed immediately, then it will be placed in the intraday queue of the system and will remain there until the conditions required for its payment are met. EPMs are placed in the queue on a first-come, first-served basis, with emergency payments forming a separate queue, which is executed on a priority basis. Payment messages from the queue are executed according to the FIFO principle - first received - first executed. In this case, an optimization mechanism can be used - an out-of-order execution of a payment with a higher priority. If the EPS is not completed by the end of the business day, it will be canceled, and the payer-payer is notified of this.
In addition, the contract between direct participants may provide for a mode of simultaneous bilateral offset of two counter payment messages from the intraday queue. When this happens, payments are removed from the queue.
The BESP system is associated with a special system of centralized liquidity management, through which the Bank of Russia provides loans to settlement participants in the form of intraday credit and overdraft. Through this system, BESP, prior to the start of the operating day, informs about the intraday credit and overdraft limits set for direct BESP participants.
Thus, the BESP system combines a real-time gross settlement scheme with netting elements. BESP provides a mechanism for saving liquid funds by building a queue, and also provides for the possibility of receiving intraday liquidity in the form of an intraday loan or overdraft. All this testifies to the fact that at present the BESP system meets modern technical requirements.
Note that, along with the BESP system, other settlement systems of the Bank of Russia operate in Russia: on the basis of electronic technology and using paper media. The former include more than seventy individual systems of intraregional electronic rassteta (VER system), which ensure the implementation of settlements in regional components, as well as a system of interregional electronic settlements (MED system), on the basis of which settlements between regional components are carried out. And finally, settlement systems between Bank of Russia institutions using advice notes (postal and telegraphic) at the intraregional and interregional levels are based on the use of paper technologies.
The above settlement systems of the Bank of Russia differ not only in territorial coverage, but also in the volume of payments made, operating rules and regulations, the composition of participants, the settlement documents used, the speed of payments and the technology used. However, they have a common feature: their operator is the Bank of Russia, which plays a major role in organizing and carrying out settlements, acting as a regulator of all payment systems, thereby establishing general rules and standards for settlements on the territory of the Russian Federation.
Federal Law No. 161 “On the National Payment System”, adopted in 2011, is intended to define the legal framework for central banks' oversight of payment systems and their infrastructure. This law describes the structure of the national CBC; special attention is paid to the general requirements for the activities of operators of various payment structures; the requirements for the organization and functioning of the PS are disclosed. The draft of this law was developed by the Ministry of Finance of the Russian Federation and the Bank of Russia, its analysis is presented in the work of Obaeva (2010).
The need to develop such a system was caused by several reasons: the presence in Russia of different time zones (11 time zones) and the large territorial extent of the country, the lag in the field of new information developments. The BESP system began its work on December 21, 2007. It regularly makes urgent payments, mainly for large amounts. Among the urgent payments of BESP participants, there are payments related to the conduct of monetary policy, interbank payments, payments on behalf of customers of credit institutions - participants in the system.
Settlements in the BESP system are subdivisions of the Bank of Russia, including its settlement network (head settlement and cash centers, operational departments, branches, etc.), Russian credit institutions (and their branches) and other clients of the Bank of Russia that are not credit organizations.
The BESP system provides for two forms of participation for Bank of Russia clients: direct and associated. Credit institutions, which are direct participants in the system, have direct access to making payments (both their own and on behalf of customers) in real time in accordance with the uniform regulations throughout the country. They can use all the services available in the BESP system. Associated members have only indirect access to making payments in the BESP system through regional components and can use a limited set of services offered by the BESP system.
At the beginning of 2010, the number of participants in the BESP system reached 1158. In 2009, they made more than 63 thousand payments totaling 106.6 trillion rubles [Bank of Russia, 2010c].
The BESP system ensures the exchange of electronic payment messages (hereinafter - EPS) with the payment system of the Bank of Russia at the level of its territorial divisions. EPS is a payment order (credit transfer). It contains complete information about the payment and additional information required to process the payment.
It should be emphasized that the BESP system carries out gross settlements in real time, i.e. calculations are made continuously for each EPS during the trading day. The payment in the system is irrevocable - at the moment of debiting funds from the account of the BESP participant - the payer, and final - at the moment of crediting the funds to the account of the BESP participant - the recipient of the funds.
A payment in the system can be made immediately if a number of criteria are met:
- - at the time of receipt of the EPS, there is no EPS in the intraday queue that has already been received from this participant during the given day and has not been completed so far;
- - if there is enough liquidity on the account in order to perform the EPS.
If the EPS cannot be executed immediately, then it will be placed in the intraday queue of the system and will remain there until the conditions required for its payment are met. EPMs are placed in the queue on a first-come, first-served basis, with emergency payments forming a separate queue, which is executed on a priority basis. Payment messages from the queue are executed according to the FIFO principle - first received - first executed. In this case, an optimization mechanism can be used - an out-of-order execution of a payment with a higher priority. If the EPS is not completed by the end of the business day, it will be canceled, and the payer-payer is notified of this.
In addition, the contract between direct participants may provide for a mode of simultaneous bilateral offset of two counter payment messages from the intraday queue. When this happens, payments are removed from the queue.
The BESP system is associated with a special system of centralized liquidity management, through which the Bank of Russia provides loans to settlement participants in the form of intraday credit and overdraft. Through this system, BESP, prior to the start of the operating day, informs about the intraday credit and overdraft limits set for direct BESP participants.
Thus, the BESP system combines a real-time gross settlement scheme with netting elements. BESP provides a mechanism for saving liquid funds by building a queue, and also provides for the possibility of receiving intraday liquidity in the form of an intraday loan or overdraft. All this testifies to the fact that at present the BESP system meets modern technical requirements.
Note that, along with the BESP system, other settlement systems of the Bank of Russia operate in Russia: on the basis of electronic technology and using paper media. The former include more than seventy individual systems of intraregional electronic rassteta (VER system), which ensure the implementation of settlements in regional components, as well as a system of interregional electronic settlements (MED system), on the basis of which settlements between regional components are carried out. And finally, settlement systems between Bank of Russia institutions using advice notes (postal and telegraphic) at the intraregional and interregional levels are based on the use of paper technologies.
The above settlement systems of the Bank of Russia differ not only in territorial coverage, but also in the volume of payments made, operating rules and regulations, the composition of participants, the settlement documents used, the speed of payments and the technology used. However, they have a common feature: their operator is the Bank of Russia, which plays a major role in organizing and carrying out settlements, acting as a regulator of all payment systems, thereby establishing general rules and standards for settlements on the territory of the Russian Federation.
Federal Law No. 161 “On the National Payment System”, adopted in 2011, is intended to define the legal framework for central banks' oversight of payment systems and their infrastructure. This law describes the structure of the national CBC; special attention is paid to the general requirements for the activities of operators of various payment structures; the requirements for the organization and functioning of the PS are disclosed. The draft of this law was developed by the Ministry of Finance of the Russian Federation and the Bank of Russia, its analysis is presented in the work of Obaeva (2010).
