|
"Anyone can make payments to whomsoever one
likes, whenever one likes, in whatever type of currency
one likes, at the cost of a few cents per transaction. There
are no settlement delays or mountains of paperwork
and value is received instantaneously. There are no
distinctions in costs or delays between a domestic and a
foreign currency transaction. Interest is computed real-time,
rather than on a `settlement day', a relic from the ancient
times, while accounting was done manually. Finally, privacy
and security are guaranteed."
Payment systems play a pivotal role in the
financial markets contributing to their efficiency and stability.
An efficient payment system can provide benefits
like reduction in systemic risk and ensuring smooth flow
of funds. Payment systems can be broadly classified
into two groups: paper-based and the electronic payment
one. The paper-based system is a traditional system
comprising of cash and cheques. Advances in technology have led
to a modern system of payments called the
`electronic payment system'. This system includes credit card,
debit card, ATMs, direct debit/credit, and Real-Time
Gross Settlement (RTGS) system.
The retail bank system involves the use and provision of cheques, card services, and cash. The
Interbank system involves the systems for calculating positions and transferring funds among financial institutions
in the interbank market. The interbank system further involves five systems, namely: the Bank of
Thailand Automated High-Value Transfer Network system (BAHTNET), the System for Managing Automated
Retail Funds Transfer system (SMART), the Electronic Cheque Clearing System (ECS), the Provincial
Cheque Clearing System (PCS) and the Bill for Collection system (B/C). The BAHTNET system is a payment
system supporting the transfer of large-value payment, while the SMART system is a payment system supporting
the transfer of small-value payment. The Electronic Check Clearing House (ECH) was established in July
1996, to operate the Electronic Check Clearing System (ECS). ECH's members are commercial banks, and
it handles the payment of checks and bills (including bills of exchange). Data is exchanged electronically,
and payments are made using accounts with the central bank. In contrast, the Provincial Cheque Clearing system
is a one-day clearing system at the provincial and district levels among the members of the banks. The
Bill Collection system is a system for collecting interbank cheques across the province. The daily average value
of transactions via the BAHTNET system have been the highest compared to the other types of systems. At the
end of year 2006, 82.07% of all the payment transactions were carried out through the BAHTNET. The Bank
of Thailand (BOT) has developed the BAHTNET system as a financial infrastructure for electronic funds
transfer among financial institutions and other organizations in Thailand and to reduce the costs and systemic risks.
The BAHTNET system started operations on May 24, 1995 by supporting high-value funds transfer on the
online RTGS basis. transactions are completely settled on a transaction-by-transaction basis in order to reduce
the settlement risk and to enhance financial
stability. |
