In order to reduce the turnaround time, banks have been allowed to use MT 102 message in Pakistan Real-time Interbank Settlement Mechanism (PRISM) system free of charges for clearing. Previously it was advised that in cities or towns where Clearing House services are not available, banks will settle their clearing obligations through their respective treasuries/head offices using MT in PRISM.
Now, in order to facilitate the stakeholders by reducing Turnaround Time (TAT) and to ensure the secured settlement of remote area clearing obligations between banks, it has been decided that banks may use MT 102 message in PRISM system free of charges and with no limit on minimum amount.
While preparing the MT 102 message for settling above referred clearing obligations, the banks will ensure that they have used a special transaction type code (039) in relevant field of MT 102 message in order to differentiate transactions relating to clearing obligations of Remote Areas from the other transactions. This transaction code has been assigned in PRISM only for remote areas transactions.
In addition, beneficiary's IBAN/Account Number along with instrument number will be used in Field 70 of each payment instruction and MT 199 will be used in case a returned instrument is not received by the collecting/presenting bank. In any case presenting or collecting and paying or drawee bank will ensure to specify beneficiary's IBAN/Account Number in the field '59'of the message.
All banks are required to devise a mechanism and establish internal procedures to be followed by their branches and treasury for smooth and timely settlement. All other instructions given in the afore-mentioned circular will remain the same.
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