Kuwait’s Automated Settlement System for Inter-participant Payments (KASSIP) is a Real Time Gross Settlement (RTGS) system managed and operated by the CBK, designed to execute high-value transactions, which is also capable of executing a great volume of retail or low-value transactions. The system was launched in 5 August, 2004 connecting local participating banks and the CBK, which uses the KASSIP system to send/receive its own payments as well as those of its customers such as ministries and state institutions.
The KASSIP system performs a wide array of functions, including:
- Processing messages through the SWIFT network and the CBK network (CBKNet).
- Execution of payment operations.
- Liquidity Management.
- Monitoring and preparing reports.
In addition to executing payments among the participants, the system also provides support to several other banking operations, including:
- Ministries and state bodies’ payments received from or paid to participants.
- Settlement of cheques among the banks.
- Monetary policy transactions.
- Sale or maturity of treasury bonds.
- Cash transactions.
- Other CBK transactions that stand to affect participants’ accounts.
Payments are settled instantaneously and in bulk. Upon KASSIP system receipt of a payment transaction from a participant, the settlement is executed instantly, provided his account has sufficient balance. And only in such case, the KASSIP system operates and sends an electronic message notifying the recipient participant of the payment.
The KASSIP system provides, consistently and continuously, final settlement technology for inter-participants payment transactions where each payment is settled individually, and priority of settlement is settled in view of availability of funds for each individual transaction instantaneously on participants’ accounts with the CBK.
The settlement is carried out provided the paying participant has sufficient balance to cover it, where the settlement is final and non-retractable.