Payment and Settlement Systems are systems associated with the transfer of money between different individuals and entities.
Payments are made manually as well as electronically. Common manual payment systems in Fiji are cash and cheque payments. Electronic payment systems in Fiji include internet banking portals, automated telling machines, EFTPOS, mobile wallets, gift vouchers and debit and credit cards.
For cheque payments, commercial banks exchange cheques with each of the other banks in the Clearing House daily. Arising from this exchange, Statement of Net Settlement is derived. Settlement of the sum of all payments is made electronically through FIJICLEAR.
FIJICLEAR is Fiji’s real time gross settlement system. Licence Commercial Banks are participants of the system. This system was established in 2007 and activity has risen at more than a thousand percent since its inception. Commercial Banks utilize FIJICLEAR primarily for interbank transfers. Its is Fiji’s designated payment system and is recognized as systemically important payment system.
Settlements forms part of the back office and plays a support role to the reserves management function of the bank. It issues settlement instructions for the FX transactions undertaken by the bank, as part of reserves management, as well on behalf of Government, other central banks in the region and supranational organizations that maintain accounts with the reserve bank.
Similarly, it undertakes the daily accounting of all FX transactions undertaken as part of the reserves functions management to ensure that positions and accounts are updated and that relevant information disseminated to stakeholders is accurate.