SBP unveils new PRISM operating rules for FIs

The State Bank of Pakistan (SBP) Tuesday issued new Pakistan Real Time Interbank Settlement Mechanism (PRISM) operating rules (PORs). These rules will be applicable on all existing as well as any future participants of PRISM, and will come into force with immediate effect. Since the issuance of PRISM Operating Rules in 2009, significant developments with regard to PRISM operations have been made. These include 3rd Party Fund Transfers, Straight through Processing and interbank fund transfer of home remittances, etc.
Accordingly, the State Bank in consultation with all stakeholders has issued the subject rules that are aligned with International Standards and provide directions related to PRISM (RTGS) business operations. The new rules provide detailed criteria with regard to PRISM participation access, settlement & finality, efficiency & effectiveness, etc.
However, the SBP has made it clear that it may, from time to time and at any time, amend these rules by deletion, substitution or addition, and where any amendment is made, will give all participants notice in writing of the amendment ("Notice of Amendment") at least 10 days before the day the amendment becomes effective and binding.
According to new PORs, PRISM system is being operated by the State Bank under the supervision of Payment Systems Department, the SBP will facilitate the already declared direct participants in their daily fund transfers, settlement of clearing obligations, and settlement of government securities
A Financial Institution will participate in the PRISM after due approval from the SBP, upon which, the PRISM participant will pay joining and subscription fees and transaction charges as may be specified by the SBP from time-to-time. The SBP and every participant will, at their own expense, make use of telecom services provided by Pakistan Telecommunication Corporation Ltd (PTCL) or any other telecom service provider as may be notified by the SBP in writing, to connect the front-end system of the participant with the host system.
The SBP will be responsible for the control, maintenance and security of the host system, application software used in the host system and the processing location of the host system. As per new rules, all the commercial banks, all the members of clearinghouse and any other institution meeting the minimum infrastructure requirements as may be prescribed by the SBP are eligible to become direct participant of PRISM.
The SBP will operate PRISM as per pre-determined schedule during each day of operation. The SBP may conduct discrete sessions of PRISM operations for specific functions and transactions and inform participants through broadcast. Transactions not allowed in a specific period will be rejected and a cancellation/rejection message will be sent to relevant participants. Any changes to the schedule will be advised to the participants well before time. However, the SBP may in the events of any technical issues and as and when needed extend timings of a particular session.
In case of any unwarranted situation or disputes arising between any direct/indirect/ special participants, these will be immediately reported to PSD along with necessary information/documents and logs. Upon receiving such requests, PSD may initiate investigation that may involve review of participant's previous logs, participant's treasury staff and other concerned stakeholders, etc. However, the SBP will not be responsible for any losses incurred by participants in the advent of such events.