BI pursues electronic clearing, joint ATMs<\/p>\n
JAKARTA (JP): Bank Indonesia, the central bank, will introduce
\nan electronic clearing system later this year and a single joint
\nAutomated Teller Machine (ATM) system next year to improve
\npayment system efficiency.<\/p>\n
Central bank sources said yesterday the electronic clearing
\nsystem would, during the first stage, cover only 40 commercial
\nbanks in Jakarta where clearing volume and value had risen
\ndrastically in recent years.<\/p>\n
\"For the other banks, we will include them gradually into our
\nelectronic clearing system in accordance with their readiness to
\nparticipate in the new system,\" one source said.<\/p>\n
Clearing members for the Jakarta clearing system have
\nincreased 9.3 percent a year over the last three years to 780
\nbank branches and 1070 sub-branches.<\/p>\n
The amount of funds cleared daily by the central bank in
\nJakarta has increased from Rp 4.5 trillion in 1991 to more than
\nRp 25 trillion (US$10.3 billion) with 300,000 clearing items
\nincluding bankers' acceptances, promissory notes and other short-
\ndated commercial papers.<\/p>\n
There are more than 100 cities and towns using their own
\ninterbank clearing systems, of which 43 are organized by Bank
\nIndonesia and its branches and the rest by central bank-appointed
\nbranches of state banks.<\/p>\n
All interbank clearing is still done manually and there is no
\nsingle system which can electronically connect local clearing
\ncenters with the central bank's clearing system in Jakarta.<\/p>\n
For large cities like Jakarta, such a clearing system causes
\ninefficiencies in the payment system because it depends on
\ntraffic and other factors.<\/p>\n
Electronic links<\/p>\n
The central bank, in cooperation with PT Lintas Artha, is
\nbuilding electronic connections with participating Jakarta
\nbranches and sub-branches Jakarta.<\/p>\n
Under the new electronic clearing system, participating banks
\nhave to encode all information in their clearing documents and
\nsend it electronically to the clearing organizer, the central
\nbank.<\/p>\n
Based on the electronic data, the central bank's central
\ncomputer will calculate and settle the clearings, all of which
\nparticipating banks can access in real time.<\/p>\n
This way participating banks will get warning of their
\nclearing positions and can provide longer window time for their
\nclients.<\/p>\n
But participating banks still must submit the hard copy of the
\nclearing items later in the day as evidence.<\/p>\n
\"We will have to demand physical documents from participating
\nbanks because our existing regulations require us to do so.
\nLater, when it is legally possible, participating banks will not
\nhave to submit hard copy,\" the source said.<\/p>\n
The organizer will then calculate the value of clearing based
\non the submitted physical clearing items and match the results
\nwith the electronic data calculation.<\/p>\n
The central bank will use image technology to speed up the
\nprocess of reading, encoding, sorting physical clearing items
\ninto the computer system and calculating clearing value.<\/p>\n
Any adjustment for differences in the two calculations will be
\ndone on the next clearing day.<\/p>\n
Joint ATM<\/p>\n
Another central bank source said the Bank Indonesia would
\npersuade all banks with ATMs to participate in a central bank-
\nsponsored single ATM system.<\/p>\n
\"Therefore, all ATM card holders would be able to use any ATM
\nin the country, from Sabang in the west to Merauke in the east,
\nfor any transactions offered by the machines,\" he said.<\/p>\n
Indonesia has 15 independent ATM networks and two joint ATM
\nnetworks.<\/p>\n
The source said all seven state banks and several private
\nbanks had agreed to support a single ATM system.<\/p>\n
\"But we still have to persuade several large private banks to
\nparticipate,\" he said.<\/p>\n
He refused to name these banks. (rid)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bi-pursues-electronic-clearing-joint-atms-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }