Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

38. The transferor bank shall initiate the transfer information, with each transaction order to include the user ID and password of the authorized transmission personnel, the transferor bank account, the time of the transfer (real-time or forward ttansfer), the transferee bank account, the transfer amount , the date of transfer and the type of transaction. Upon the receipt of the information, and once the Bank has verified the password and that the authorized transmission personnel user ID is tallied, the order will be executed as instructed therein; otherwise it shall be returned.

Where a transfer has been effected in accordance with the provisions of the preceding Paragraph, an online institution may offer no opposition to the transfer on the grounds that the transmission personnel were not those originally authorized, that others assumed their role under pretense, or for any other reason.

38-1. If an interbank fund transfer relates to a securities settlement, it can only be processed with a real-time transfer. Each instruction shall include the items prescribed in paragraph 1, Direction 38, and additional information such as the transferor or the transferee securities firm’s account number, account name, or code.

39. The Bank may, if necessary, stipulate a minimum amount for each interbank fund transfer.

40. Once a real-time transfer transaction is accepted by the Bank, the account transfer will be executed immediately and irrevocably if the available balance of the transferor bank is sufficient for payment. After the execution, the Bank will simultaneously inform both parties of the transaction as well as record the resulting book balance. However, if the available balance of the transferor bank is insufficient for payment, the said transaction shall be alternatively processed through the queuing mechanism.

41. Once a transaction is accepted by the Bank, if the available balance of the transferor bank is insufficient for payment, the Bank shall assign one of the following classes of priority to the said transaction, and process it through the queuing mechanism:

(1) First class: Funds payable by the financial institution to the Bank.

(2) Second class: Negotiable instruments for clearing payable by a financial institution, the net amount payables for negotiable instruments cleared by the clearing house, securities settlement funds transfers, credit card settlement funds transfers or funds appropriated to the "interbank funds transfer guarantee special account" by the financial institution.

(3) Third class: Funds for forward transfers to repay interbank call loans when due.

(4) Fourth class: Funds transfers between financial institutions as well as other payments.

42. Payment orders of the same priority stated in Direction 41 shall be executed based on the principle of first-in-first-out. However, if the available balance is insufficient to cover payments for payment instructions of high priority, the Bank may first execute the payment instructions of a lower priority, and after completing all payment instructions of the same priority in order, then process payment instructions of the next priority.

In case a transferor bank intends to revoke a real-time transfer transaction in queue, or discovers an error in the payment instruction, it may initiate an instruction for revocation.

43. For transactions processed in accordance with the preceding two Directions, if the available balance is still insufficient for payment towards the cutoff time of the queuing mechanism, all payment orders remaining in the queue shall be immediately revoked, and the Bank shall simultaneously notify both parties to the transaction; among the cancelled orders, the negotiable instruments for clearing and the net amount payable for negotiable instruments clearing for first class and second class shall be processed in accordance with pertinent directions of this Bank.

For those transfer transactions revoked as stated in the preceding Paragraph, the Bank may issue a "Certificate of Transfer Transaction Revoked due to Insufficient Funds" as per transferee bank's application.

44. The forward transfer instruction shall include the transfer date on which the transfer will be executed. The Bank shall inform both parties of the transaction in advance upon receiving the instruction, and place it in file. The transfer shall be executed and posted to the related account at 1:30 in the afternoon on the designated transfer date; if there is insufficient fund to cover payment of a forward transfer transaction, it shall be processed through the queuing mechanism.

If the designated transfer date is not a business day, the execution of the transaction shall be deferred to the next business day.

45. If a transferor bank intends to revoke a forward transfer transaction or discovers an error in the content of the instruction, it may negotiate with the transferee bank for initiating an instruction for revocation either on the transmission date or the designated transfer date.

Where the transferee bank in the preceding Paragraph is an offline institution, it may fill out a "Letter of Authorization for the Revocation of Interbank Funds transfer Transaction" (Format 2) to entrust the Department of Banking of the Bank to revoke the instruction on its behalf.

46. If an offline institution sends its staff bearing negotiable instruments to the Bank to process fund transfers, in all cases the transfers will be processed on a real-time basis. However, if the available balance of the transferor bank is insufficient for payment, it will not be placed in queue and the negotiable instrument will be returned on the spot. The staff sent to conduct the transfer shall wait for the processing result before they leave.

47. In order to avoid the delay of processing payment instructions, the Bank may set up criteria to require the financial institutions to ensure that a certain proportion of their outgoing payments are processed before a specified time each day.

48. Any fund transfers for open market operations, rediscounting, bond or treasury bill transactions, foreign exchange transactions or other operations between an online institution and an internal unit of the Bank shall be processed according to the following provisions. A statement of the fund transfers and the account balance after settlement shall be provided to the online institutions.

(1) For payments due to the Bank from an online institution, except where other laws or regulations stipulate payment through the issuance of a note with the Bank as the payer, the online institution may transfer funds from its account in the “CBC Interbank Funds Transfer System” to the account designated by the Bank or have a deduction made from its own account by the Bank in accordance with prior agreement.

(2) For payments due to an online institution from the Bank, the Bank shall transfer funds into the online institution's account.

The provisions in Directions 40 ~ 43 herein shall apply mutatis mutandis to the situation where a deduction is made from the account of the online institution by the Bank in accordance with prior agreement as stipulated in subparagraph 1 of the preceding paragraph.

49. Where a transferor bank transmits fund transfer information and fails to receive a return confirmation from the Bank for an inordinate amount of time, it shall trace the transaction, and where the transaction order has not been successfully transmitted, the online institution shall retransmit the information.