Pakistan Join World’s Elite with New payment System
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Pakistan Real-time Interbank Settlement Mechanism (PRISM+) – Everything You Need to Know
Pakistan Real-time Interbank Settlement Mechanism (PRISM+): In the financial world, real-time transactions are not just a convenience—they’re a necessity. Pakistan has taken a major leap forward in its payment infrastructure with the Pakistan Real-time Interbank Settlement Mechanism (PRISM+), a modernized RTGS (Real-Time Gross Settlement) system designed to make large-value payments faster, safer, and more efficient.
If you’ve been wondering what PRISM+ is, how it works, and why it matters for banks and financial institutions in Pakistan, this guide covers everything you need to know.
What is PRISM+?
PRISM+ is an advanced RTGS platform introduced by the State Bank of Pakistan (SBP) to streamline high-value interbank transactions and settlement processes. It is a next-generation system that replaces the previous PRISM system with enhanced features, security, and liquidity management tools.
With PRISM+, financial institutions can now enjoy real-time settlements with better liquidity-saving mechanisms, improved risk management, and extended operating hours. This means faster transaction processing and reduced gridlocks for the entire financial ecosystem.
Key Features of PRISM+
PRISM+ isn’t just an upgrade; it’s a complete transformation of the interbank settlement process. Here are its standout features:
- Customizable Dashboards & Alerts – Real-time visibility of balances, transactions, and settlement positions.
- Immediate Settlement Finality – High-value interbank funds transfer in real time.
- Scheduled Payments – Ability to schedule future-dated transactions for precise liquidity planning.
- Transaction Queuing & Prioritization – Time-critical payments are prioritized to avoid delays.
- Automated Billing & Fee Calculation – Downloadable invoices and billing logs for transparency.
- Comprehensive Audit Trails – Complete tracking of every transaction for compliance and security.
- Role-based Access Control – Strengthened security with defined user roles and permissions.
- Real-time Alerts – Notifications for settlement failures or delays.
Central Securities Depository (CSD) Modules in PRISM+
PRISM+ integrates powerful modules for securities settlement and collateral management, including:
- Auction Module – For government securities with real-time bid validation and allocation.
- Secondary Market Trading Module – Facilitates trade instruction submission and matching.
- Collateral Management System – Supports mark-to-market valuation, regulatory haircuts, and tracking of collateral.
- Open Market Operations (OMO) Module – Enables liquidity injection, repo/reverse repo transactions, and OMO settlements.
These features allow banks to handle both cash and securities transactions in a single, unified platform.
How PRISM+ Improves Liquidity Management
Liquidity is the lifeblood of the financial system, and PRISM+ ensures it flows smoothly with these mechanisms:
Liquidity Saving Mechanism (LSM) Queues
- Introduces multiple settlement queues for better payment gridlock resolution.
- High-priority payments go through the main queue.
- Lower-priority payments are batched in LSM Queues 1 and 2 for efficiency.
Reserve Placement and Earmarking
- Participants can earmark reserves for specific systems like 1Link, Raast, NIFT, and NCCPL.
- This ensures critical transactions are executed without competing for liquidity.
Intraday Liquidity Facility (ILF)
- Automatic liquidity provision via nominated securities in the CSD.
- Supports real-time liquidity shortfalls and ensures continuous settlement.
Additional Functionalities in PRISM+
- Extended Operating Hours – More time for banks to complete transactions.
- Real-time Payment Cancellation & Returns – Flexibility for error handling.
- Cash Deposit/Withdrawal (Optional) – Available at the SBP Karachi Office.
How to Use PRISM+ for Your Institution – Step-by-Step
If you are a financial institution or participant bank, here’s how to get started with PRISM+:
- Log in to the PRISM+ Portal – Access the platform with your authorized credentials.
- Configure Role-Based Access – Assign appropriate permissions for your staff.
- Set Liquidity Preferences – Utilize LSM queues, earmark reserves, and set ILF pools.
- Monitor Dashboards in Real Time – Track transactions, balances, and settlement positions.
- Download Reports – Use settlement statements and billing logs for reconciliation.
Why PRISM+ is a Game-Changer for Pakistan’s Financial System
PRISM+ enhances speed, transparency, and security in the financial ecosystem. Here’s why it matters:
- Instant Settlements reduce counterparty risk.
- Efficient Liquidity Management minimizes gridlocks.
- Integrated Securities Modules simplify market operations.
- Enhanced Security & Audit Trails strengthen regulatory compliance.
FAQs About PRISM+
1. What is PRISM+ used for?
PRISM+ is used for high-value interbank funds transfers, securities settlement, and real-time liquidity management in Pakistan’s banking system.
2. Who can access PRISM+?
Only authorized financial institutions and participants approved by the State Bank of Pakistan can access the system.
3. How does PRISM+ improve liquidity?
It offers LSM queues, reserve earmarking, and Intraday Liquidity Facility (ILF) through collateralized securities.
4. Does PRISM+ support government securities auctions?
Yes. The integrated Auction Module allows participants to submit bids and settle transactions in real time.
5. What happens if a payment fails in PRISM+?
The system provides real-time alerts for settlement failures, allowing quick corrective action.
Final Thoughts
The Pakistan Real-time Interbank Settlement Mechanism (PRISM+) marks a significant step toward digital transformation in Pakistan’s financial infrastructure. With real-time settlement, advanced liquidity management, and improved security features, PRISM+ is shaping the future of banking in the country.
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