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