Source: WE BANK

Leading Large and Small Payment Clearing System

The People's Bank of China started the construction of the second generation CNAPS at the end of 2009, IBPS (Super Online Banking), an online payment inter-bank clearing system, has been added, And upgraded the large and small payment clearing system, Institutions are allowed to take legal persons as units through"one-point access and one-point liquidation". Each branch can use the unified liquidation account of the institution to realize capital settlement, and the liquidity management tools of the large-sum real time payment system are added, thus greatly improving the efficiency of payment and liquidation and the efficiency of the use of institutional funds. The following focuses on the current Large real time Payment System (HVPS), Small Batch Payment System (BEPS) and Online Payment Inter-bank Clearing System IBPS.

The Large real time Payment System (HVPS) operates from 8:30 p.m. to 5:30 p.m. the next day from Sunday to Friday, and will also operate on the first day of each weekend or legal holidays, from 8:30 p.m. the previous day to 8:30 a.m. the same day, but only accepts capital injection and fund lending services initiated by participants in the RMB cross-border payment system. The large-sum real time payment system is responsible for inter-bank ordinary exchange of more than 50,000 yuan or inter-bank emergency exchange of less than 50,000 yuan, In addition, it is also responsible for capital settlement, which handles treasury fund remittance and transfer, fund lending market, securities trading and other businesses, as well as capital settlement, which handles cash deposit and withdrawal, deposit payment, refinancing and other businesses of the People's Bank of China, and net clearing of intra-city bill exchange. The large-sum real time payment system implements the real-time payment and settlement mode (RTGS), which initiates payment instructions one by one and clears them in full, In terms of liquidity management, it supports liquidity management tools such as liquidity real time inquiry, account liquidity Alert, queuing business matching, daytime overdraft, automatic pledge financing, and automatic borrowing at the end of the day, speeding up the transfer of large amounts of funds to accounts and the turnover efficiency of social funds.

On the other hand, the Small Batch Payment System (BEPS) operates around the clock and is responsible for exchange business of less than 50,000 yuan and special businesses such as unlimited amount of fixed-term debit and credit. It adopts the delayed netting mode (DNS) of batch transmission business and regular clearing and margin rolling.

As a supplement to the small batch payment system, the online payment inter-bank clearing system (IBPS), It can support functions such as real time inter-bank transfer and inter-bank account inquiry, The access institution can be a bank or a third-party payment company, and the amount is less than 50,000 yuan as in the small batch payment system. However, real time forwarding and regular offset are used to support 7-day * 24-hour real time receipt, which solves the major pain point of non-real time in the small batch payment system in the past. Although the functions of the online payment inter-bank clearing system and the small batch payment system overlap to some extent, the two systems are still in a parallel state at present, and some special payment transactions are still completed through the small batch payment system.

In addition to the above-mentioned CNAPS system, China UnionPay realized the centralized processing of national bank card inter-bank transactions on China UnionPay Bank Card Inter-bank Payment System (CUPS) in 2005. All banks carry out bank card inter-bank transaction clearing through UnionPay, and handle the final fund clearing and settlement through the large-sum real time payment system, thus realizing the real time payment between bank cards.

At the same time, since the birth of China's first third-party payment enterprise in 1999, In 2005, a well-known third-party tool was launched, and the third-party payment industry officially entered a sustained and stable"golden" stage. A series of third-party payment institutions appeared one after another in China. Non-bank payment business grew rapidly, providing good payment convenience and experience for residents' living consumption and other scenes, and promoting the development of the industry. At the same time, the rapid development of third-party payment has also brought some problems, such as bypassing the clearing system and adopting the direct bank mode for fund transfer and clearing, which makes commercial banks and central banks unable to grasp specific fund transaction information, which may lead to the breeding of many illegal acts, such as money laundering and misappropriation of reserve funds. In this context, with the approval of the People's Bank of China, Netcom Clearing Co., Ltd. Was established in Beijing in August 2017. The birth of the Internet connection will cut off the mode of direct connection of third-party payment institutions to banks, with one end connecting with third-party payment institutions and the other end connecting with the banking system, and will be supervised by the People's Bank of China. According to the requirements of the Payment and Settlement Department of the People's Bank of China, the"direct connection and network connection" have been basically completed by June 30, 2018.