Lebanon National Payment System Components
The Three Components of the New National Payment System are:
REAL TIME GROSS SETTLEMENT SYSTEM (BDL-RTGS)
Real Time Gross Settlement System (BDL-RTGS) offers a secure, reliable and real time method of payment that adheres to international standards. On July 9, 2012 and after two years of preparation and training conducted to the participants, BDL successfully launched the BDL-RTGS. Participation in the BDL RTGS is defined in Circular 127, thus including Banque Du Liban as a participant, Banks operating in Lebanon, financial institutions’ that have a current account at BDL, and the Central Securities Depositary - MIDCLEAR. Any transaction settled on the BDL-RTGS is final and irrevocable. Operationally, Fund Settlement Instructions are settled on a gross basis and in a real time manner provided that Participants have sufficient funds Participants can interact with the BDL-RTGS via two different networks.
The primary connection to the BDL-RTGS is via Swift Message Carrier Network; however BDL made available the Secure Infrastructure (SITI) network to be utilized in cases of contingency. In case of any failure in the SWIFT Network or SWIFT connectivity at the level of the Participant, BDL-RTGS will remain accessible by any participant via SITI. BDL-RTGS is a four currency payment system: LBP, USD, Euro, GBP. Each participant in the RTGS has one Settlement Account (Current Account at BDL) per currency. The Settlement Account also includes sub-settlement accounts know as LOM accounts, which help in the management of liquidity during the course of a business day. Those accounts are not reflected on the BDL General Ledger and will zero-out at their designated cut-off times. Currently, there are five LOM subaccounts at BDL-RTGS: General LOM, Cheque Clearing Settlement LOM, MidClear Local Market LOM POS Settlement LOM, and ATM Clearing Settlement LOM. BDL may add new LOMs if there are new business needs. BDL is the owner of BDL-RTGS and it is responsible for operating and regulating the BDL-RTGS as well as overseeing that Participants abide by the rules and regulations set by BDL.
BDL RETAIL PAYMENT & CLEARING SYSTEM (BDL-CLEAR)
BDL launched the automated Retail Payment & Clearing System (BDL-CLEAR) for Clearing Retail Payments, including Cheques, Direct debits, Cards transactions, in November 2013. BDL-CLEAR is a low value - high volume bulk payments system. The System provides clearing facilities for paper based payment instruments such as Cheques, and other payment instruments such as Direct Debits, Credit Transfers and Cards transactions (ATM,POS). Participants in BDL-CLEAR would be able to pay and/or collect payments from and to all participants. Participants shall ensure that they are maintaining sufficient balances in their RTGS settlement accounts for the settlement of various clearing streams in the BDL-CLEAR. BDL- CLEAR is owned, operated, and overseen by BDL and respects international standards and best practices.
THE PAYMENT SYSTEM FOR GOVERNMENT TRANSACTIONS (BDL-PAYGOV)
The Payment System for Government transactions (BDL-PayGov) is the third component of the National Payment System, which is an application that is intended to facilitate Government payments. Government Institutions will use PayGov to make and receive Payments in a secure and fast manner. Settlement of PayGov transactions takes place at BDL, as part of its mandate under the Code of Money and Credit. Government payments that are made, Via PayGov, are done with limited risk by ensuring that they are prefunded. Risks are also reduced due to the availability of payment information and statistics that enables Government institutions to make better decisions with regard to liquidity management. BDL aims to go Live with PayGov by June 2017. This will enable government institutions, including the Ministry Finance, and the banking sector to be engaged with an advanced infrastructure for Clearing & Settlement of Government Payments. BDL-PayGov is owned, operated, and overseen by BDL.