Real Time Gross Settlement System (KASSIP)
It is a system for processing interbank payments based on the net derived from other settlement systems and payment transactions, which are real-time transactions of payment orders, money transfers or immediate payments. Transactions sent by the participants, namely local banks, branches of foreign banks and the Central Bank of Kuwait (CBK) as settlement agent and participant, are settled separately. No minimum limits apply to payments. A payment order is a direct order from a participant to CBK to pay an amount on a specific date to the account of a certain party, whether such account is held with CBK or another participant(s), in view of availability of sufficient funds in the account, for the benefit of the beneficiary of the payment transaction having an account with one or more participants. Such transaction shall be settled by crediting the amount to the beneficiary's account with the receiving participant and shall be final and non- retractable.
This is done through the Central Bank of Kuwait network (CBK-net), which is a large-scale private network owned by CBK, which allows all participants to connect from their workplaces to the central computers of the Real-time Gross Settlement System and through direct Automated Execution Technologies. Transactions are processed during the business hours announced by CBK, within the framework of the Principles for Financial Market Infrastructures (PFMIs) issued by the Bank for International Settlements (BIS). Participants must ensure proper management of the risks resulting from the use of this system to ensure that the transactions between participants are carried out regularly and in a manner that maintains operation continuity and soundness.
The system produces various reports, including data and information to be addressed to a participant. Reports should be available upon request or on a specified time, along with payment notice, which is a message from CBK to a participant notifying that a payment transaction has been processed in its favor.