Credit institutions to use intraday loans 24/7 for FPS operations

The Bank of Russia will allow credit institutions to use intraday and overnight loan limits to transfer funds through the Faster Payment Service (FPS) of the Bank of Russia payment system when the service functions independently.¹

This function will be available from the first day of operation of the speedy and non-speedy transfer of the Bank of Russia payment system in 2020. The respective amendments to Bank of Russia Regulation No. 595-P, dated 6 July 2017, ‘On the Bank of Russia Payment System’ become effective from 1 January 2020.²

The Bank of Russia establishes limits for intraday and overnight loans in accordance with agreements with credit institutions.³ No amendments to agreements are required.

In order to use intraday and overnight loan limits during the independent functioning of the FPS, a credit institution should establish a liquidity amount for the FPS taking into account the said limit upon the completion of the resulting batch input session of the Bank of Russia payment system.⁴

The Bank of Russia payment system will notify credit institutions about intraday and overnight loan limits which credit institutions may use to set the liquidity amount for the FPS for the period of independent functioning.

The Bank of Russia will extend overnight loans, which are used to repay intraday loans, during the resulting batch input session of the Bank of Russia payment system not only in working days but also on weekends and holidays, when speedy and non-speedy transfer services are provided for in the Bank of Russia payment system.

Overnight loans extended on weekends and holidays will be repaid during a preparatory batch input session of the Bank of Russia payment system on the first working day following the said weekend and holidays.

¹ During the period from the launch of the faster payment service after the completion of operations on accounts of Bank of Russia customers in the resulting batch input session of the Bank of Russia payment system of the preceding operating day and until the launch of a preparatory batch input session of the Bank of Russia payment system of the current operating day, including weekends and holidays established by Russian law.

² Bank of Russia Ordinance No. 5209-U, dated 16 July 2019, was posted on the Bank of Russia website on 19 August 2019.

³ Agreements for the participation in operations for the issue and redemption of Bank of Russia loans backed by securities or credit claims. For the procedure for credit institutions to conclude the said agreements with the Bank of Russia, refer to the BoR Secured Loans section of the Bank of Russia website.

⁴ Should a credit institution have outstanding Bank of Russia overnight loans, the intraday and overnight loan limit will only be available for setting the liquidity amount for faster payments during the period of independent functioning of the faster payment service in the amount reduced by the amount of overdue overnight loan (loans) and the interest on the said loan (loans).

The reference to the Press Service is mandatory if you intend to use this material.

28.10.2019 00.00.00