Decree to cut bank transfer time to four hours - NBH
<p>Budapest, October 12, 2010 (MTI-ECONEWS) - A decree by the Hungarian National Bank of Hungary will reduce the time for electronic bank transfers from one day to just four hours from the middle of 2012, central bank deputy governor Julia Kiraly said at a press conference on Tuesday.</p>
The decree will be published on Wednesday and come into force on July 1, 2012, Ms Kiraly said. Making the necessary changes to reduce the time for electronic transfers is expected to cost Hungarian banks HUF 7bn-8bn, she added.
The decree only affects forint transfers made within the country.
Complying with the faster transfer time will require significant changes at banks, NBH director Lajos Bartha said. The conversion will affect the whole banking system as well as interbank clearing house Giro, which will operate the new settlement system, and the NBH, he added.
Currently, Hungarian banks must complete domestic paperless forint transfers with next day (T+1) settlement, if the sender initiated the order before the initiating bank s cut-off time -- the time before which it accepts transfer orders as those having arrived on the given day -- and the receiving account is at a different bank. The cut-off time may not be earlier than two hours before the bank s closing time.
The transfer must be completed on the same day if the accounts of the sender and the receiver are at the same bank.
Transfers initiated on paper must be completed with T+2 settlement at the latest.
Currently, the bulk of non-urgent transfers are completed with settlement in one day.
NBH officials told Econews earlier that shortening the time for completing paperless transfers would require developments at interbank clearing house Giro.