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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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