Central Bank of Bahrain
  

Payment & Settlement Systems

The CBB operates and manages the national payment and settlement systems in the Kingdom of Bahrain. An overview of each is given below:

Inter-bank Payments and Settlement

The CBB operates a Real Time Gross Settlement (RTGS) System where all inter-bank payments are processed and settled in real time on-line mode. The RTGS system provides for payment and settlement of customer transactions as a value addition. The RTGS system enables the banks to have  real time information on, for example, account balances, used and available intra-day credit, queue status, transaction status etc. The RTGS system is multi-currency capable and based on Straight Through Processing (STP).

The RTGS system is open from 8 am to 1.40 pm every business day. At the end of each business day, the RTGS system will transfer any remaining balances from banks RTGS accounts to the banks clearing accounts. Any remaining negative balance on any bank clearing account are charged with a penalty interest rate corresponding to the CBB interest rate + 5 percentage points.

Securities Depository and Settlement

The CBB offers depository and settlement services for holdings and transactions in government securities. The CBB operates a Scripless Securities Settlement System (SSSS) as a depository of all dematerialised Government Securities. The SSSS provides for auction, issue and allotment of all government securities including Islamic securities. It also provides for securities transactions such as sale, purchase, repo, reverse repo, etc. The SSSS is multi-currency capable and based on Straight Through Processing (STP).

Bahrain Cheque Truncation System (BCTS)

As part of the Central Bank of Bahrain vision to replace the paper based Automated Cheque Clearing System operated by the CBB, the Bahrain Cheque Truncation System (BCTS) commenced its operations in cooperation with the BENEFIT Company (BENEFIT) on 13th May, 2012. Under the BCTS, cheques presented for payment will be scanned at the bank where the customer deposits his/her cheque(s) and the electronic images and payment information, instead of the physical cheque, will be transmitted to the BCTS Clearing House. Clearing and payment will then be done based on those transmitted cheque images and payment information and not the physical cheque(s).

In exercising the powers conferred by Article 32(a) of the CBB Law, the CBB authorised the BENEFIT Company (BENEFIT) to operate and manage the BCTS Clearing House to provide image based cheque clearing facilities to retail banks, subject to the Directives, regulations, terms and conditions imposed by the CBB from time to time.

FAQ on Cheque Standards and Specifications 

ATM Clearing

The ATM clearing is based on a Deferred Net Settlement (DNS) system. The Benefit Company in Bahrain receives and processes all the ATM transactions. The GCC net, a leased line network across the GCC countries, provides for the communication backbone for the transmission of all the ATM transactions and settlement related electronic messages.

RTGS-SSS Membership Documents

The CBB is the settlement bank for ATM transactions across the GCC. The ATM clearing is based on a Deferred Net Settlement (DNS) system. The Benefit Company in Bahrain receives and processes all the ATM transactions. The GCC net, a leased line network across the GCC countries, provides for the communication backbone for the transmission of all the ATM transactions and settlement related electronic messages.

RTGS Membership Documents

CBB-Application for RTGS membership - type A Download  Download 
CBB-Application for RTGS membership - type B Download  Download 
CBB-Form of undertaking by RTGS type A member Download  Download
CBB-Form of undertaking by RTGS type B member Download  Download 
CBB-Form of undertaking-grant of intra-day credit -RTGS type A member Download  Download 
CBB-Standing instruction for SOD funding & zeroing of the RTGS settlement account Download  Download 
CBB-standing instruction for SOD transfer of BD deposit for IDC collateral Download  Download
CBB-Modification of standing instruction for SOD funding of the RTGS settlement account Download  Download 
CBB-Modification of standing instruction for SOD transfer of BD deposit for IDC collateral Download  Download 
CBB-RTGS Member type A - power of attorney Download  Download 
CBB-RTGS Membership Operating Guidlelines, 2007 Download  Download 
CBB-RTGS membership regulations, 2007 Download  Download 
CBB-Grant of RTGS membership type A Download  Download 
CBB-Grant of RTGS membership type B Download  Download 

SSS Membership Documents

CBB-Application for direct SSSS membership - type A Download  Download 
CBB-Application for indirect SSSS membership - type B Download  Download
CBB-Form of undertaking by SSSS type A member Download  Download 
CBB-Form of undertaking by SSSS type B member Download  Download 
CBB-SSS Membership regulations, 2007 Download  Download
SSSS (membership) Business Operating Guidelines, 2007 Download  Download
CBB-Grant of SSSS membership type A Download  Download 
CBB-Grant of SSSS membership type B Download  Download
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