According to an official notice from Nepal Rastra Bank dated May 2, 2021, Nepal Clearing House Limited (NCHL) has revised the timing for making transactions and settlements for Real-Time Gross Settlement (RTGS) from its payment systems.
According to the notice, the NRB has discussed the ongoing second wave of Covid-19 and has demanded that all parties involved only conduct RTGS transactions between 10:30 a.m. and 1:00 p.m.
Based upon this notice, Nepal Clearing House Limited (NCHL) has revised the transaction and settlement timing for RTGS transactions via the payment systems like NCHL- ECC, NCHL-IPS and connectIPS.
RTGS (Real-Time Gross Settlement)
The Real-Time Gross Settlement (RTGS) system facilitates the processing of high-value and time-sensitive transactions between participating BFIs, as well as the net settlement of systemically relevant payment systems. It allows for immediate fund realization and reduces the chance of other payment systems’ settlement. Nepal Rastra Bank implements and hosts the central RTGS scheme (NRB).
connectRTGS is an integration component that connects the internal systems of banks and financial institutions (BFIs) with the NRB’s RTGS system. It serves as a conduit for BFIs to initiate and process RTGS transactions. It has an outward module for initiating outgoing transactions and an inward module for processing incoming RTGS transactions. It is integrated with the bank’s system to allow maximum STP for banks in order to meet the NRB-mandated SLA for the RTGS system.
The majority of commercial banks have received it, and it will be expanded to development banks and finance companies in the future.
NCHL-ECC Daily Updates
The NCHL-ECC system’s presentation start time for routine clearing and settlements is set to 12:00 noon of T-1. It means that the presentment must be made before 12:00 p.m. the day before the transaction. Similarly, the response deadline has been extended until 1:00 p.m. After 1:30 p.m., the settlement will begin. From Sunday to Thursday, the daily clearing session is open.
The timings for Express and High-Value check clearing have not changed, according to NCHL.
NCHL-IPS has been modified.
The timing for running RTGS transactions from NCHL-IPS has also been updated by NCHL. The presentation for Exchange 0 should be made between the hours of 12:30 a.m. and 10:00 a.m. the previous day.
Similarly, on the day of the transaction, the reply cut-off time is 10:00 AM to 11:00 AM. Furthermore, the settlement will begin after 11:00 a.m.
The presentment should be put in Exchange 1 between the hours of 10:00 a.m. and 12:00 p.m. on the transaction day. The response deadline is set for 1:00 p.m. on the day of the transaction. Similarly, after 1:30 p.m., the settlement will begin.
Exchanges 2 and 3 will remain open until further notice, while Exchanges 3 and 4 will remain closed.
The previously set timings for Exchanges 2 and 3 can be found in this picture.
Updates for connectIPS
The RTGS via connectIPS presentation and response duration is open for 24 hours. After 10:30 p.m. and 1:30 p.m., however, the final settlement is free.
In addition to the restrictions imposed by the continuing lockdown, banking hours have been changed in recent days. As a result, NCHL has taken this decision in order to ensure that banks and financial institutions can conduct transactions and make payments in a convenient manner even in these difficult times. This change in schedule will take effect on May 3rd, 2021, and will last until further notice.