Payment & Settlement Systems

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.

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).

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 

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.

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.