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Zambia Interbank Payment and Settlement System (Zipss) Operating Rules

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Zambia Interbank Payment and Settlement System (Zipss) Operating Rules Bank of Zambia ZIPSS Rules ZAMBIA INTERBANK PAYMENT AND SETTLEMENT SYSTEM (ZIPSS) OPERATING RULES Bank of Zambia Banking, Currency and Payment Systems Department JULY, 2015 1 Bank of Zambia ZIPSS Rules Table of Contents 1. General Principles and Objectives.............................................................................................. 1 1.1 General .................................................................................................................................... 1 1.2 Role of Bank of Zambia ........................................................................................................... 1 2. Access Criteria and Conditions ................................................................................................... 3 2.1 Categories of Participants ....................................................................................................... 3 2.2 Operational Capacity .............................................................................................................. 3 3. Adding Participants and Changes in Participants’ Status............................................................ 6 3.1 Adding or modifying a Participant .......................................................................................... 6 3.2 Suspension or Termination ...................................................................................................... 6 4. Security ..................................................................................................................................... 9 4.1 Data Integrity, Availability and Confidentiality ....................................................................... 9 4.2 Communications ................................................................................................................... 10 4.3 Use of BOZ-Supplied Materials .............................................................................................. 10 5. Establishment and Maintenance of Users ................................................................................ 11 5.1 General .................................................................................................................................. 11 5.2 Request to Create a User....................................................................................................... 11 5.3 Request to Modify a User ...................................................................................................... 12 5.4 Request to Suspend or Delete a User .................................................................................... 12 5.5 Creation and Maintenance of User Profiles .......................................................................... 12 6. Financial Collateral Arrangements ........................................................................................... 13 6.1 Establishment of Reserves Accounts ..................................................................................... 13 6.2 Provision of intraday loan facility (ILF) .................................................................................. 13 7. Settlement of Net Settlement Instructions (NSIs) .................................................................... 14 8. Payments ................................................................................................................................. 15 8.1 Payments to be Processed on ZIPSS ...................................................................................... 15 8.2 Payments Limits .................................................................................................................... 15 8.3 Beneficiary Identification ...................................................................................................... 15 8.4 Payment Priorities ................................................................................................................. 15 8.5 Modification of Priority ......................................................................................................... 15 8.6 Straight-through Processing ................................................................................................. 16 9. Payment Message Format ....................................................................................................... 17 9.1 Format ................................................................................................................................... 17 9.2 RTGS Payments ..................................................................................................................... 17 i Bank of Zambia ZIPSS Rules 10. Processing Procedure .............................................................................................................. 18 10.1 General Issuing Conditions .................................................................................................... 18 10.2 Submission and Validation .................................................................................................... 18 10.3 Queuing ................................................................................................................................. 18 10.4 Processing of Payment Instructions in the Pending Queue ................................................... 19 10.5 Cancellation of Queued Payment Instructions ...................................................................... 19 10.6 Processing of NSI ................................................................................................................... 19 10.7 Gridlock Resolution ............................................................................................................... 19 11. Irrevocability of Payment Instructions ..................................................................................... 21 11.1 Moment of Entry into the System ......................................................................................... 21 11.2 Irrevocability and Finality of Payment Instructions ............................................................... 21 12. Reports and Enquiry Facilities .................................................................................................. 22 13. Monitoring of Payment Flows and Reconciliations .................................................................. 23 14. Intraday and Overnight Loan Facilities ..................................................................................... 24 14.1 Primary Conditions ................................................................................................................ 24 14.2 Limitation, Suspension and Termination of Access to Intraday Credit .................................. 24 14.3 Overnight Loans .................................................................................................................... 24 15. Business days and Operating Hours ......................................................................................... 25 16. Handling Technical Failures ..................................................................................................... 26 16.1 General Obligations .............................................................................................................. 26 16.2 Telecommunication Failure ................................................................................................... 26 17. Audit Rules .............................................................................................................................. 27 18. Pricing Rules ............................................................................................................................ 28 19. Administrative Requirements and Financial Rules ................................................................... 29 19.1 Audit Trails ............................................................................................................................ 29 19.2 Publication of Statistics ......................................................................................................... 29 19.3 Conservation and Archiving of Documents ........................................................................... 29 20. Contingency Event ................................................................................................................... 31 21. Liabilities and Responsibilities ................................................................................................. 32 21.1 Force Majeure ....................................................................................................................... 32 21.2 Responsibilities of the Participants ....................................................................................... 33 21.3 Responsibilities and Liabilities of BOZ ................................................................................... 34 21.4 Claims and Compensation ..................................................................................................... 35 21.5 Administrative Fees ............................................................................................................... 36 ii Bank of Zambia ZIPSS Rules 22. Dispute Resolution .................................................................................................................. 37 22.1 Law and Jurisdiction .............................................................................................................. 37 22.2 Conciliation and
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