Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
Electronic Fund Transfer System
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-1
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
Sistem Kliring Elektronik
Pak U mempunyai
tabungan di Bank X
CEK
Bank A
CEK
Bank A
Penyerahan warkat kliring
(Session I)
2
BI
BANK X
Penerimaan/Penolakan
Warkat (Session II)
CEK
Bank A
1
Barang
CEK
Bank A
Penerimaan Warkat
(Pertemuan I/pagi)
BANK A
Pak E mempunyai giro
di Bank A
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-2
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
Sistem Kliring Elektronik
Warkat Kliring
•
•
•
•
•
•
Cek
Bilyet Giro
Wesel Bank Untuk
Transfer
Surat Bukti Penerimaan
Transfer
Nota Debet
Nota Kredit
Sistem Kliring
•
•
•
•
Manual
Semi Otomasi
Otomasi
Elektronik
Penyelesaian Akhir
(Settlement)
Pemindahbukuan rekening giro
masing-masing Bank di
BANK Indonesia
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-3
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
Sistem Kliring Elektronik
MAKER (DRAWER)
DATE
PAYEE
The paper cheque is just
a carrier of information.
AMOUNT
CURRENCY
DRAWEE
BANK
DRAWEE BANK
NUMBER
CHEQUE
NUMBER
AUTHORIZED
SIGNATURE OF
MAKER’S AGENT
DRAWER
ACCOUNT
NUMBER
Electronic transmission is
better.
We dematerialize the cheque
(remove the paper).
06130018184310143700000000010000USD065200356425020010130
DRAWEE
BANK
NUMBER
DRAWER
ACCOUNT
NUMBER
CHEQUE
NUMBER
AMOUNT
CURRENCY
PAYEE
BANK
NUMBER
PAYEE
ACCOUNT
NUMBER
DATE
Only the information is sent to the clearing house
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-4
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Sistem Kliring Elektronik
International Fund Transfer
Intro.to FISCAM
Diagram Sistem Kliring Elektronik
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-5
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Sistem Kliring Elektronik
International Fund Transfer
Intro.to FISCAM
Mekanisme
1. Pemisahan warkat per jenis transaksi (debet atau kredit),
stempel kliring, dan pencantuman MICR
2. Bank pengirim merekam data ke sistem dengan menggunakan
reader encoder atau data entry
3. Mengelompokkan warkat dalam batch
4. Mengirimkan batch DKE secara elektronik melalui jaringan
komunikasi data ke penyelenggara, Fisik warkat dikirim juga
untuk dipilah berdasarkan bank tertuju dengan menggunakan
mesin baca berteknologi image
5. Peserta dapat melihat status DKE (sukses atau gagal)
6. SPKE memproses DKE setelah waktu transmit DKE berakhir
7. SPKE mem-broadcast informasi hasil kliring sehingga peserta
bisa melihat secara on line posisinya
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-6
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Sistem Kliring Elektronik
1. BUYER SENDS
AN ORDER TO
BUYER’S BANK TO
CREDIT $X TO
SELLER’S ACCOUNT
IN SELLER’S BANK
ACH Credit Transaction
BUYER
BUYER’S
BANK
Intro.to FISCAM
SELLER
2. BUYER’S BANK
SENDS TRANSACTION
TO AUTOMATED
CLEARINGHOUSE
6. SELLER’S BANK
CREDITS SELLER’S
ACCOUNT WITH $X
SELLER’S
BANK
4. BUYER’S BANK
PAYS $Y TO
SETTLEMENT BANK
SETTLEMENT
BANK
5. SETTLEMENT BANK
PAYS $YTO
SELLER’S BANK
CLEARINGHOUSE
3. CLEARINGHOUSE DETERMINES THAT
BUYER’S BANK OWES SELLER’S BANK $Y
(ALL TRANSACTIONS ARE NETTED)
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-7
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Sistem Kliring Elektronik
1. BUYER AUTHORIZES
SELLER TO DRAW $X
FROM BUYER’S
ACCOUNT IN BUYER’S
BANK
BUYER
International Fund Transfer
Intro.to FISCAM
ACH Debit Transaction
2. SELLER ASKS HIS BANK
TO SEND TRANSACTION
TO AUTOMATED
SELLER CLEARINGHOUSE
7. SELLER’S BANK
CREDITS SELLER’S
ACCOUNT WITH $X
8. BUYER’S BANK
ADVISES BUYER
OF PAYMENT
BUYER’S
BANK
5. BUYER’S BANK
PAYS $X TO
SETTLEMENT BANK
SETTLEMENT
BANK
6. SETTLEMENT BANK
PAYS $X TO
SELLER’S BANK
SELLER’S
BANK
3. SELLER’S BANK
SENDS TRANSACTION
TO AUTOMATED
CLEARINGHOUSE
CLEARINGHOUSE
4. CLEARINGHOUSE DETERMINES THAT
BUYER’S BANK OWES SELLER’S BANK $X
(ALL TRANSACTIONS ARE NETTED)
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-8
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Real Time Gross Settlement
International Fund Transfer
Intro.to FISCAM
Tujuan
1. Memberikan pelayanan sistem transfer dana antar peserta,
antar nasabah peserta dan pihak lainnya secara cepat,
aman, dan efisien
2. Memberikan kepastian pembayaran
3. Memperlancar aliran pembayaran (payment flows)
4. Mengurangi resiko settlement baik bagi peserta maupun
nasabah peserta (systemic risk)
5. Meningkatkan efektifitas pengelolaan dana (management
fund) bagi peserta melalui sentralisasi rekening giro
6. Memberikan informasi yang mendukung kebijakan
moneter dan early warning system bagi pengawasan bank
7. Meningkatkan efisiensi pasar uang
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-9
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Net VS Gross
Real Time Gross Settlement
NET SETTLEMENT
Internet Bank Gross Payment Before Netting
Sender
Bank
Intro.to FISCAM
Receiving Bank
A
B
C
Ammount of
Liability
D
A
-
90
40
80
210
B
70
-
0
0
70
C
0
50
-
20
70
D
10
30
60
-
100
Total Claim
80
170
100
100
450
Net Claims (+) or Liabilities (-) of Each Bank
Bank
A
B
C
D
Net
Total
-130
100
30
0
0
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-10
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
Net VS Gross
Real Time Gross Settlement
GROSS SETTLEMENT
(40)
BANK A
(80)
(90)
(70)
BANK B
BANK C
(50)
(60)
(10)
(30)
(20)
BANK D
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-11
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Real Time Gross Settlement
International Fund Transfer
Intro.to FISCAM
Karakteristik
1.
2.
3.
4.
5.
6.
7.
8.
9.
V Shaped Structure
Transfer mechanism
Window Time
No Money No Game
Capping
Queue Management and Gridlock Resolution
Intraday Liquidity Facility
Bye-Laws
Information Technology Security and Disaster
Recovery Plan
10.Future Plan
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-12
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Real Time Gross Settlement
Intro.to FISCAM
V Shaped Structure
Sender
Bank
Receiving
Bank
3. Full Payment
Message
1. Full Payment
Message
2. Settlement
RCC
BI-RTGS
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-13
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Real Time Gross Settlement
1.
2.
3.
International Fund Transfer
Intro.to FISCAM
Transfer Mechanism
Sender Bank enters credit transfer input into RTGS Terminal
which will be further transmitted to RCC at Bank Indonesia
RCC will process the credit transfer with the following mechanism:
• To verify whether the checking account balance of the
sender bank is higher or equal to the nominal ammount of credit
transfer
• When the sender bank’s checking account is adequate, a posting
in the sender bank and receiving bank checking accounts will be
executed simultaneously
• When the sender bank checking account is not adequate, the credit
transfer will be placed in queue within the RTGS machine
Settled credit transfer information will be transmitted
automatically to RCC to RTGS terminal to receiving bank
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-14
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
Real Time Gross Settlement
Window Time
06.30 a.m. to 5.00 pm
Prolong time for certain cases
No Money No Game
Only credit other participant account
Not Allowed to Debit other
participant account
Capping
•
•
To minimize vairous payment
system risk
In the beginning, Rp 1 Billiun
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-15
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Real Time Gross Settlement
1.
International Fund Transfer
Intro.to FISCAM
Queue Management and Gridlock Resolution
The queue in BI-RTGS system based on priority level and first in
first out (FIFO)
2.
3.
4.
The queue modul in BI-RTGS system shall be completed with bypass
FIFO facility which automatically operates when the queue reaches a
certain ammount, for the purpose of reducing the number of queues
The priority level in queue module in BI-RTGS system is as follows:
• First priority
Coverage of clearing result
• Second priority
Bank transaction with BI/the government
• Third priority
Credit transfer originating from BI-RTGS
participant banks
When BI-RTGS detects gridlock, gridlock resolution facility will be
operated automatically as well as manually based on the criteria of
balance adequacy or using First Available First Out (FAFO) method
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-16
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Real Time Gross Settlement
1.
2.
3.
4.
5.
6.
7.
International Fund Transfer
Intro.to FISCAM
Intraday Liquidity Facility
BI-RTGS participant banks shall file application to obtain FLI with BI
Banks shall pledge SBI and or government bonds as collateral so that FLI
facility is fully secured
BI will determine the maximum FLI that could be withdrawn in a certain
period within 1 day. The FLI used by BI-RTGS participant banks as
required by the bank’s real need in an intraday (provided when needed)
When a bank receives incoming transfer, the incoming transfer will
automatically be used to reduce FLI balance used
On certain limitation, FLI facility shall be returned to BI at the end of a
day. If the bank could not return it on time, the FLI facility will be
transfermed into FPJP overnight
On T+1, BI will claim all the bank liabilities by using “super priority”
transaction which will be settled before other transactions
At certain time in the morning, if the bank has not settled the payables, the
bank will be suspended from BI-RTGS
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-17
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
Fedwire (US RTGS)
• Real-time gross settlement system of the Federal Reserve
• Used by any institution that has an account at the Federal
Reserve
• Used mainly for large transfers (average: $3.5M)
• On-line connection (7800 institutions, 99% of transfers)
– Direct connection
– Computer dialup
• Off-line connection (1700 institutions, 1% of transfers)
– Telephone instructions with codeword
• FedLine access from PCs
• Some services over the Web (not funds transfer yet)
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-18
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Fedwire (US RTGS)
International Fund Transfer
Intro.to FISCAM
Participants
•
•
•
•
•
Depository institutions
Agencies and branches of foreign banks
Member banks of the Federal Reserve System
U.S. Treasury and authorized agencies
Foreign central banks, foreign monetary authorities,
foreign governments, and certain international
organizations; and
• Any other entities authorized by a Reserve Bank
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-19
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
How Fedwire Works
Fedwire (US RTGS)
PNC WANTS TO TRANSFER
$1M TO EVERGREEN BANK
EVERGEEN BANK
(SEATTLE)
9. SEATTLE BRANCH NOTIFIES
EVERGREEN. PAYMENT IS
NOW IRREVOCABLE.
PNC BANK
(PITTSBURGH)
1. PNC SENDS TRANSFER ORDER
TO PITTSBURGH BRANCH OF
CLEVELAND FED
SAN FRANCISCO FED
(SEATTLE BRANCH)
CLEVELAND FED
(PITTSBURGH BRANCH)
8. SF FED NOTIFIES
SEATTLE BRANCH
2. PITTSBURGH BRANCH SENDS
ORDER TO CLEVELAND FED
INTERDISTRICT
SETTLEMENT FUND
SAN FRANCISCO FED
6. ISF NOTIFIES
SF FED
EVERGREEN BANK
...
WELLS FARGO
WESTERN BANK
7. SF FED ADDS $1M TO
EVERGEEN ACCOUNT
ATLANTA FED
BOSTON FED
CLEVELAND FED
...
4. CLEVELAND
SENDS ORDER
TO ISF
CLEVELAND FED
SAN FRANCISCO FED
DOLLAR BANK
MELLON BANK
...
PNC BANK
5. ISF SUBTRACTS $1M FROM
CLEVELAND, ADDS $1M TO SF
3. CLEVELAND FED SUBTRACTS
$1M FROM PNC ACCOUNT
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-20
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
Fedwire (US RTGS)
• In 2000,
– 108 million Fedwire transfers
– Value $380T (11 times the World Economic Product)
– New York Fed: 40 million transfers, $209T
• “Instantaneous” (within minutes) irrevocable
settlement
• Payment guaranteed by Fed
• Operates 18 hours/day on business days
• No minimum dollar amount
• Daylight overdrafts permitted (intraday peak: $70B)
– Fee charged if not collateralized ($6.94 per million)
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-21
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
CHIPS
• (Clearing House Interbank Payments System)
– Private, owned by NY Clearing House Association
– U.S. dollar leg of foreign exchange (90% share)
– 128 banks, 29 countries
– Continuous multilateral netting
• Each bank’s position v. every other bank constantly
recalculated
– Irrevocable transactions, end-of-day settlement
– $1.44T per day, average transaction $6.6M
– Cost per transaction: $0.13 - $0.40
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-22
Electronic Fund Transfer Systems
Electronic Clearing
CHIPS
RTGS
International Fund Transfer
Intro.to FISCAM
CHIPS Operation
• London Bank L has an account in a NY Bank A
• Wants to transfer $1M to the account of Bank J in NY Bank
B (A and B are on CHIPS)
• Bank L sends Bank A a SWIFT message
• Bank A verifies the message, enters it into CHIPS (Bank A
has the $1M; doesn’t rely on L’s credit)
• CHIPS verifies that the transaction is within A’s debit limit
and the B-A bilateral limit; otherwise rejects
• CHIPS notifies Bank B that $1M is being deposited from
Bank L through Bank A for Bank J
• Bank B notifies Bank J that $1M has been added to its
account
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-23
Electronic Fund Transfer Systems
Electronic Clearing
CHIPS
RTGS
International Fund Transfer
Intro.to FISCAM
CHIPS Operation
• CHIPS closes at 4:30 p.m. NY time
• Each settling bank gets a settlement report showing
net amount owed or owing
• Settling banks have until 5:30 to challenge the total
or must pay into the CHIPS account at the NY
Federal Reserve by Fedwire (US RTGS)
• Banks with net credit positions are paid by 5:45
• All payment orders are final and irrevocable
• Fedwire is a payment system
• CHIPS is a clearing system
• SWIFT is a messaging system
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-24
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
CHIPS Operation
CHIPS
LONDON BANK L
1. BANK L TELLS BANK A
TO PAY $1M TO J’s
ACCOUNT IN BANK B
S
W
I
F
T
JACKSONVILLE BANK J
2. BANK A VERIFIES
FUNDS, ENTERS CHIPS
TRANSACTION
NEW YORK BANK A
(L’S CORRESPONDENT)
F
E
D
W
I
R
E
Intro.to FISCAM
CHIPS
CHIPS
CHIPS
CHIPS
4. AT 4:30, CHIPS TELLS
BANK A HOW MUCH
TO PAY VIA FEDWIRE
9. CHIPS ADVISES B
OF CREDIT AMT
A’S ACCOUNT
B’S ACCOUNT
S
W
I
F
T
10. B CREDITS J
WITH $1M
NEW YORK BANK B
(J’S CORRESPONDENT)
3. CHIPS VERIFIES
CREDIT LIMITS,
ADJUSTS ACCTS
INTERNALLY
7. BY 5:45, CHIPS MAKES PAYMENT TO B
5. BANK A MUST
PAY BY 5:30
FEDERAL RESERVE
A’s ACCOUNT
B’s ACCOUNT
6. FED MOVES $$
INTO CHIPS ACCT
8. FED DEBITS CHIPS
ACCOUNT; CREDITS
B’S ACCOUNT
CHIPS SETTLEMENT ACCOUNT
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-25
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
SWIFT
A major international interbank network,
transmitting instructions and other information,
NOT a fund transfer network. Settlements are
conducted through Fedwire, CHIPS, etc.
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-26
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
SWIFT
• Society for Worldwide Interbank Financial
Telecommunication (non-profit, Brussels)
• Financial messaging system, not a payment system
– Settlement must occur separately
•
•
•
•
•
•
•
7125 institutions, 193 countries
1.27 billion messages per year: $5 trillion per day
Cost ~ $0.20 per message
X.25 packet protocol
CCITT X.400 store-and-forward standard
Moving to full IP network in 2002
swiftML
– interoperable with ebXML
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-27
Electronic Fund Transfer Systems
Electronic Clearing
SWIFT
RTGS
International Fund Transfer
Intro.to FISCAM
Security Control
There are five central requirements of network security:
(1) Confidentiality: Data should not be disclosed to unauthorized persons;
(2) Access control: Operation of the system is under some control
mechanism to prevent illegal access of data;
(3) Integrity: Message information should remain original to carry
designated transaction details.
(4) Data origin authentication: Some way is used to prove the source of
data;
(5) Nonrepudiation: System should provide some features to ensure that
nobody can deny involvement in an electronic transaction so that the
legal effect of an EDI transaction can be relied on.
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-28
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
SWIFT
International Fund Transfer
Intro.to FISCAM
Security Control
End-to-end authentication
SWIFT provides secret-key and end-to-end authentication; i.e. authentication
between two banks detecting any bogus payment message.
Sequence number control
Authentication control does not prevent a message from being replicated,
deleted, or stored and retransmitted at a later date. The sequence numbering of
messages handles these requirements. A payment message is transmitted with an
input sequence number, output sequence number, and transaction reference
number. They must be in order separately. The format and the input sequence
number are checked by the SWIFT operating center and those messages with
format errors or wrong sequence numbers are rejected by operating centers.
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-29
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
SWIFT
User access control
Terminals logging into the system must verify their identity using a password
issued by SWIFT. The password is sent in two parts in the form of a table.
Encryption between operating centers
To preserve the privacy of the banks' messages, the international lines that
connect operating centers and join them to regional processors are protected by
encryption.
SIPN level core security solutions
•
•
•
•
IP Packet filtering
IP Encryption Authentication and Integrity
Router Authorization
Firewalls
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-30
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Others Fund Transfer System
International Fund Transfer
Intro.to FISCAM
CHAPS
CHAPS (Clearing House
Automated
Payment
System) is an electronic
transfer system for sending
same-day value payments
from bank to bank. It
operates in partnership with
the Bank of England in
providing the payment and
settlement service.
CHAPS was developed in 1984, and is one of the largest real-time gross
settlement systems in the world, second only to Fedwire in the US. CHAPS
offers its Members and their participants an efficient, risk-free, reliable sameday payment mechanism.
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-31
Electronic Fund Transfer Systems
Electronic Clearing
•
RTGS
International Fund Transfer
Intro.to FISCAM
Others Fund Transfer System
CHAPS Sterling Volumes and Values
1990,1997,1999 & 2000
Q1
1990
Q1
1997
Q1
1999
Q1
2000
Average daily
31,000 62,000 72,000 81,738
volume
Average daily
£78
£139
£169
£189
value
billion billion billion billion
Average
£2.5
£2.2
£2.3
£2.31
transaction value million million million million
Minimum
£5,000
0
0
0
transaction value
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-32
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Others Fund Transfer System
International Fund Transfer
Intro.to FISCAM
TARGET
TARGET, which stands for the Trans-European Automated Real-time Gross
settlement Express Transfer system, is the real-time gross settlement system
for the euro.
TARGET consists of fifteen national real-time gross settlement (RTGS)
systems and the ECB payment mechanism (EPM), which are interlinked so
as to provide a uniform platform for the processing of cross-border payments.
TARGET is more than simply a payment infrastructure; it will offer a
premium payment service which will overcome national borders between
payment systems in the EU.
TARGET is a real-time system: under normal circumstances payments will
reach their destination within a couple of minutes, if not only a few seconds,
of being debited from the sending participant's account; all payments will
receive the same treatment, regardless of their value.
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-33
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
Others Fund Transfer System
International Fund Transfer
Intro.to FISCAM
TARGET
TARGET is a gross settlement system in which each payment will be handled
individually. Acknowledgement of the successful execution of each individual
payment order will be sent to the sending national central bank in real time.
TARGET provides intraday finality: settlement will be final once the funds have been
credited. The money received will be central bank money. It will be possible to re-use
these funds several times a day. Liquidity will be tied up only for the length of time
necessary for real-time settlement to take place.
TARGET is accessible to a large number of participants. Hence, most credit
institutions will be able to use TARGET to make payments on their own behalf,
independently of other participants.
TARGET is very easy to use. To initiate a cross-border payment via TARGET,
participants will simply send their payment orders to the euro RTGS system in which
they participate using the domestic message format with which they are familiar.
TARGET will take care of the rest.
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-34
Electronic Fund Transfer Systems
Electronic Clearing
RTGS
International Fund Transfer
Intro.to FISCAM
Others Fund Transfer System
Diskusi
Program Pascasarjana, Universitas Gunadarma, Magister Management , Budi Hermana-35