Bank of Papua Introduces Kina Automated Transfer System
Bank of Papua New Guinea has rolled out an electronic inter-bank funds transfer system in the country. The implementation of electronic inter-bank funds transfer and Real Time Gross Settlement (RTGS) is a major step forward for PNG and will bring many advantages to all sectors of the economy.
The Kina Automated Transfer System (KATS) or National Payment System which went live on October 14th represents a step in Papua New Guinea transition to a 21st century banking system using the latest technology.
Through this initiative, Bank of PNG and the commercial banks are transforming PNG’s banking system to meet the standards of the system currently used in Australia, New Zealand and Singapore.
The system allows all the commercials banks including BPNG to exchange funds electronically in real time during the business day. The RTGS allows banks and their customers to settle payments
immediately and to know they have received value, rather than having to wait until cheques are cleared.
The system will also facilitate greater use of electronic banking and improve electronic payment facilities. This will significantly reduce the amount of time people spend in bank queues.
Government employees will also benefit by being paid through a more streamlined process by the Department of Finance.
It will also reduce systemic risk within the banking system but it will also streamline funds transfer process making it more reliable and efficient.
For example, importers will soon be able to transfer payments to Customs in real time to uplift their cargo from the wharves much faster than is currently the case.
Tax payments will be able to be made electronically which will increase efficiency and reduce fraud.
Next year, BPNG will impalements cheques and direct credits in KATS as well. This will change the way tellers operate. The signatures and photographs will be checked by comparing images already stored in the system.
An Internal Revenue Commission, PNG Customs and the Department of Finance will be able to get their balances and statements in real time and will be able to send and receive payments from their own computer systems, which are being joined to BSS.