Bank of Russia Payment System capabilities expanded
The Bank of Russia has implemented a new tool in its payment system to ensure seamless settlements of financial market transactions by banks and the Federal Treasury. This applies to deposit and repo transactions concluded on Moscow Exchange and Saint-Petersburg Currency Exchange to be cleared by the National Settlement Depository.
Following their clearing, payments may now be settled directly in the Bank of Russia Payment System. Earlier, similar settlements of repos were conducted by the National Settlement Depository. To this end, transaction participants had to transfer part of their funds from their correspondent accounts with the Bank of Russia.
The new service enables banks and the Federal Treasury to use liquidity efficiently, manage their funds more flexibly, cut their operating expenses, and minimise the possibility of delays and outstanding settlements.