Electronic Fund Transfer System-Electronic Securities Transfer System-The Instant and Continuous Transfer of Funds (FAST) System
Electronic Fund Transfer (EFT) System
The EFT System provides real time transfer and real time gross settlement of Turkish Lira interbank payments. First generation of the EFT System started to operate in April 1992 and was followed by reconstructed second generation of the EFT System, which started to operate in 2000. The third generation of the EFT System, which was developed in house by the CBRT, started to operate in 2013.
The third generation of the EFT System is divided into two functional parts. Custumer payments are settled in Turkish Lira Payments System of Customer Payments whereas; interbank payments and banks’ payments related to international correspondent transactions are settled in Turkish Lira Payments System of Interbank Payments.
Both systems operate by using softwares which are developed by the CBRT’s own human resources and technical facilities.
Electronic Securities Transfer System (ESTS)
The ESTS System provides custody of securities and transfer and gross settlement of banks’ securities operations electronically, real time and book entry form. Second generation of the ESTS System started to operate on 12 July 2013 under with respect to reconstruction program of Turkish CBRT’s payment systems.
Information messages on the transaction flows of the market auctions conducted by the CBRT, which do not include information on fund or securities transfer, have been transferred to a separate platform on 30 September 2012. The aim of this platform, called the Auction System (IhS), is to minimize operational risks.
The arrangements for the operations of the EFT and ESTS systems are set out in the “CBRT Payment Systems Operational Rule Book”.
Features of the CBRT's Payment Systems
The major advantages and features of the CBRT’s Payment and Securities Settlement Systems are as follows:
- Electronic transfer of money among banks,
- Faster and safer transfer of money at lower costs,
- Easier and more effective fund management by banks,
- Reduced need for manpower and paper-based transactions,
- Provided an infrastructure that enables diversity of payment services,
- Dismissal of physical issuance and exchange of securities,
- Delivery of securities versus payment.
What are the operating hours for CBRT Payment Systems
The CBRT Payment Systems operate on week days, except public holidays, between 8:30 a.m. and 5:30 p.m. The systems are open until 1:00 p.m. on half working days.
However, the Central Bank may change the operating hours to enable banks to make customer payments.
Cancellation and return in the CBRT Payment Systems
Based on the irrevocability principle, it is not possible in the CBRT Payment Systems to cancel the payments transferred to accounts.
As incorrect payments can be returned only by the receiving bank, customers should apply to their own banks in such cases.
Transaction duration in the CBRT Payment Systems
In the CBRT Payment Systems, payments among banks are processed and transferred to the accounts at the receiving banks in less than 1 second, while retail payments among customers are transferred within 30 seconds on average.
Payments via the system are transmitted to the payees without delay as long as the account balance of the sending bank is sufficient. In other words, payments are not withheld at the CBRT Payment Systems and do not require any approval.
However, transfer durations may differ due to internal workflows of sending and receiving banks. In such cases, customers have to contact the sending and receiving banks.
Who can join the CBRT Payment Systems?
All banks operating in Türkiye can join the CBRT Payment Systems. Central Registry Agency (MKK) is also a participant of the ESTS System.
Self-assessment report of the EFT-ESTS System
Additionally, the self-assessment report of the EFT-ESTS System for the observance of the Principles for Financial Market Infrastructures (PFMI), which have been defined by the Committee on Payments and Market Infrastructures of the Bank for International Settlements (BIS) and the International Organization of Securities Commission (IOSCO) for all financial market infrastructure institutions including payment systems, central counterparties, securities settlement systems, central securities depositories and trade repositories, can be accessed here.
Detailed information about CBRT Payment Systems can be accessed here.
The Instant and Continuous Transfer of Funds (FAST) System
The Instant and Continuous Transfer of Funds (FAST) System is an immediate payment system where customers can send payment orders 7x24 via system participants. FAST System, designed as an independent system from EFT, is developed, operated, and owned by the CBRT. Payments in the system are executed within seconds, and the funds are instantly available in the recipient's account. Transactions that are not completed within the specified period are canceled. System participants notify the sending and receiving customers about the payment result as soon as the payment is completed.
The FAST System launched on December 18, 2020, as a pilot run where only bank employees can send payments and put into service to all customers on January 8, 2021.
The rules regarding the system's functioning are provided in the "FAST System Operational Rule Book". Banks operating in Türkiye can participate in the system; non-bank's participation will be evaluated after June 2021.