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Ｉ. General Provisions
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1.The Central Bank of the Republic of China (Taiwan)(hereafter referred to as "the
Bank") has prescribed these Directions for the purpose of governing electronic
interbank funds transfer and settlement.
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2.The term "Interbank funds" as referred to in these Directions shall mean
deposits in the following accounts opened at the Department of Banking of the
Bank:
(1) Bank funds- reserve accounts A.
(2) Other financial institution funds.
Funds in internal operating accounts opened at the Department of Banking by the
Bank's various units will be deemed "interbank funds" as referred to in the
preceding Paragraph.
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3.The term "Electronic Interbank Funds Transfer and Settlement Operations" as
referred to in these Directions shall mean the use of the "CBC Interbank Funds
Transfer and Settlement System" (hereafter referred to as "CBC Interbank Funds
Transfer System") established by a computer connection between the Bank and the
following institutions approved by the Bank in order to carry out transfers and
settlements of funds:
(1) Financial institutions.
(2) Clearing Institutions.
The term “Clearing Institutions” as referred to in the second subparagraph of
the preceding paragraph shall cover clearing institutions for the clearance of
checks, electronic payments and securities.
The term “Securities” as referred to in the preceding paragraph shall include
bills, bonds and stocks.
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4.The term "clearance" as referred to in these Directions shall mean the process
of transmitting and processing payment instructions or securities exchange
instructions between financial institutions and calculating the resulting
net-credit or net-debit positions.
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5. The term "settlement" as referred to in these Directions shall mean the procedures
by which the Bank credits or debits designated accounts to eliminate the
debtor/creditor relationship, based on net credit or net debit positions as per
payment instructions or securities exchange instructions between financial
institutions.
Settlements may be effected by means of one of the following methods:
(1) Real-time gross settlement: payment instructions will be settled in real time
on a transaction by transaction basis.
(2) Deferred net settlement: payment instructions will first be offset against
each other and performed at designated times based on the resulting net credit
and net debit positions.
(3) Other methods of settlements approved by the Bank.
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6.The term "Clearing Systems" as referred to in these Directions shall mean the systems for
carrying out the clearance of checks, electronic payments or securities between financial
institutions.
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7.The term "Online institutions" as referred to in these Directions shall mean
institutions performing operations online through the "CBC Interbank Funds
Transfer System" referred to under Direction 3.
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8.The term "Transferor bank" as referred to in these Directions shall mean an
institution making an outward transfer of interbank funds; "transferee bank"
shall mean an institution receiving an inward transfer of interbank funds.
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8-1. The term “securities settlement funds transfer” as referred to in these
Directions shall mean transactions in which securities firms entrust a
designated bank to transfer settlement funds to Clearing Institutions by using
the CBC Interbank Funds Transfer System or in which Clearing Institutions
transfer settlement funds to the bank designated by securities firms by using the
CBC Interbank Funds Transfer System.
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8-2.The term “credit card settlement funds transfer” as referred to in these Directions
shall mean transactions in which issuers of credit cards or the designated banks by
issuers transfer payables to Clearing Institutions or in which Clearing Institutions
transfer receivables to acquirers or the designated banks by acquirers by using the
CBC Interbank Funds Transfer System.
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9.Interbank funds account balances fall into the following two categories:
(1) Book balance: refers to the resulting book amount after a transaction has
been executed and completed; if the book balance is negative, it indicates
intraday overdraft.
(2) Available balance: refers to the total of book balance plus intraday
overdraft granted by the Bank.
The term "intraday overdraft" as referred to in the preceding Paragraph
shall mean advances that the Bank provides to interbank funds accounts of
financial institutions during daily business hours in accordance with the
"Directions for the Conduct of Intraday Overdrafts of the Central Bank of
the Republic of China (Taiwan)"; the term "intraday overdraft limit" refers
to the intraday overdrafts credit that the Bank grants to a financial
institution as per application in accordance with the said Directions.
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[Related Regulations]
[Related Circulars]
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10.The term "queuing mechanism" as referred to in these Directions shall mean an
operating mechanism, in case the available balance of a financial institution
is insufficient to cover the payment specified in payment instructions, through
which the Bank may base on the nature of transactions to assign them a class of
priority and place them in the queue for processing, where they will be executed
in order as soon as the available balance becomes sufficient for the deduction
of payment.
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11.Participants in the Clearing Institutions’ Clearing Systems (hereafter referred to as
"Participant Entities") shall be limited to the following institutions:
(1) Financial institutions required to deposit reserves under the Central Bank of the
Republic of China (Taiwan) Act.
(2) Securities firms approved under the Securities and Exchange Act that have applied
to participate in the securities clearing system in accordance with Clearing
Institutions operating rules.
(3) Other financial institutions or government bodies approved by the Bank.
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12.Interbank fund transfer transactions fall into the two following categories:
(1) Real-time transfer: refers to a transaction that shall be executed
immediately at the time it is received.
(2) Forward transfer: refers to a transaction that is held pending acceptance
and shall be executed at the designated time.
The forward transfer as refrred to in the preceding Paragraph shall mean a
transaction that the transferor bank may initiate a payment instruction to be
executed on any business day within one year following the initiating date.
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13.Interbank funds settlement operations refer to the following operations:
(1) Payments of negotiable instruments.
(2) Settlements of net debit and net credit positions from the exchange of
bills.
(3) Settlements of net debit and net credit positions through electronic payment
or securities clearing system.
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14.The interbank funds inquiry services shall allow online institutions to inquire
about transaction details, account balances and other related information at any
time during business hours.
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15.Real-time transfers of interbank funds and encashments for negotiable
instruments presented shall be executed only if the available balance at an
account is sufficient for payment.
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16.Online institutions shall use the "CBC Interbank Funds Transfer System" in
accordance with the relevant Directions of the Bank.
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