Payment & Settlement

Inter-bank Payments and Settlement

The CBB operates a Real Time Gross Settlement (RTGS) System where all inter-bank payments are processed and settled in real time, on-line mode. The RTGS system provides for payment and settlement of customer transactions as a value addition. The RTGS system enables the banks to have  real time information on, for example, account balances, used and available intra-day credit, queue status, transaction status etc. The RTGS system is multi-currency capable and based on Straight through Processing (STP).

The RTGS system is open from 8 a.m. to 3:25 p.m. every business day. At the end of each business day, the RTGS system will transfer any remaining balances from banks RTGS accounts to the banks clearing accounts. Negative balances on any bank clearing account are charged with a penalty interest rate of 10% p.a.

Securities Depository and Settlement

The CBB offers depository and settlement services for holdings and transactions in government securities. The CBB operates a Scripless Securities Settlement (SSS) System as a depository of all dematerialised Government Securities. The SSS System provides for auction, issue and allotment of all government securities including Islamic securities. It also provides for securities transactions such as sale, purchase, repo, reverse repo, etc. The SSS System is multi-currency capable and based on Straight through Processing (STP).

Bahrain Cheque Truncation System (BCTS)

As part of the Central Bank of Bahrain vision to replace the paper based Automated Cheque Clearing System operated by the CBB, the Bahrain Cheque Truncation System (BCTS) commenced its operations in cooperation with the BENEFIT Company (BENEFIT) on 13th May, 2012. Under the BCTS, cheques presented for payment will be scanned at the bank where the customer deposits his/her cheque(s) and the electronic images and payment information, instead of the physical cheque, will be transmitted to the BCTS Clearing House. Clearing and payment will then be done based on those transmitted cheque images and payment information and not the physical cheque(s).

In exercising the powers conferred by Article 32(a) of the CBB Law, the CBB authorised the BENEFIT Company (BENEFIT) to operate and manage the BCTS Clearing House to provide image based cheque clearing facilities to retail banks, subject to the Directives, regulations, terms and conditions imposed by the CBB from time to time.

Bahrain Electronic Cheque System (BECS)

As part of the Central Bank of Bahrain’s (CBB) ongoing efforts towards developing the national payment systems in the Kingdom of Bahrain and adopting the latest technologies in such payment systems, the CBB has launched electronic cheques (e-Cheques) services as a means of payment complementary to traditional paper cheques, to represent a beginning towards the process of transitioning into a digital economic society. e-Cheques retain all basic functionality and legal validity of paper cheques in addition to providing special benefits, including a digital payment feature for customers who rely on e-Cheques to conduct their day-to-day transactions or business.

The CBB has directed the Benefit Company B.S.C (c) (“Benefit”) to implement and operate the Bahrain Electronic Cheque System (BECS) in accordance with the provisions of the relevant laws, including the Electronic Communications and Transactions Law promulgated by Legislative Decree No. (54) of 2018 and Legislative Decree No. (55) of 2018 with respect to the Electronic Transferable Records Law.

The BECS was launched in October 2021 and is operated by Benefit.  The BECS is the first fully integrated e-Cheque system in the world, which provides its services to retail bank customers, both individuals and corporate.

Near Real-Time Electronic Fund Transfer System (EFTS)

ATM Clearing

The ATM clearing is based on a Deferred Net Settlement (DNS) system. The Benefit Company in Bahrain receives and processes all the ATM transactions. The GCC net, a leased line network across the GCC countries, provides for the communication backbone for the transmission of all the ATM transactions and settlement related electronic messages.

RTGS-SSS Membership Documents

The CBB is the settlement bank for ATM transactions across the GCC. The ATM clearing is based on a Deferred Net Settlement (DNS) system. The Benefit Company in Bahrain receives and processes all the ATM transactions. The GCC net, a leased line network across the GCC countries, provides for the communication backbone for the transmission of all the ATM transactions and settlement related electronic messages.