Payments & Banking System Modernization Project

closed

The main objective of the proposed project is to develop a modem, integrated national payments system that is accepted and used by the commercial banks and their clients. The project has the following four components: Component 1) Payments System Infrastructure, which will comprise the following subcomponents: Bulk-clearing system (BCS): technical assistance for advisory services and establishment of a modern, fully automated bulk-clearing system. b) Inter-bank card system, supported by a Card Processing Center (CPC): technical assistance for advisory services and establishment of a national inter-bank card arrangement supported by a shared processing center. Real-time gross settlement system (RTGS): technical assistance for advisory services and establishment of an RTGS to provide timely settlement of large-value or urgent inter-bank transactions. Project management support for the payments infrastructure modernization program: NBKR is committed to completing a complex payments system within a tight timeframe. Component 2) General ledger of National Bank of the Kyrgyz Republic (NBKR): feasibility study, as well as advisory services and investment costs to enhance and strengthen NBKR's General Ledger (GL) so that it is fully compatible and consistent with the requirements of the improved payments system. It will provide full automation and interface between the RTGS and all components of the payments system and NBKR. Component 3) Banking sector reform: to help implement other areas of the Government's banking sector reform program, the proposed project will support the strengthening of the SSC, to improve its efficiency in delivering banking and payment services and thus better fulfill the banking needs of its customers. Component 4) Project implementation and administration: This component will include support to the Project Implementation Unit (PIU) for the implementation and administration of the overall project.