The Bank of Israel acts to increase the use of the Zahav (RTGS) system

30.06.2010
 
The Bank of Israel acts to increase the use of the Zahav (RTGS) system
 
The Bank of Israel is taking steps to increase the use of the Zahav system (Israel's Real Time Gross Settlement, or RTGS, system)––a system that settles payments immediately, finally, and with no possibility of their being cancelled. The Zahav system is another element that serves to strengthen Israel's financial stability, as it reduces the risks inherent in the clearing process, not only in the system itself, but also in the other payment systems connected with it.
With that purpose, the Bank will act to increase the public's, and in particular financial and business entities' awareness of the advantages of making payments via the system. An increase in the share of payments transferred via Zahav will reduce the risks in the whole of Israel's payment system, and will thus underpin its stability.
Measures to be taken by the Bank include:
1.       A three-week advertising campaign in the press and internet;
2.       Displaying information on the advantages of the Zahav system in bank branches (especially in business branches);
3.       The fee charged by the banking corporations for use of the system will be cut, concurrent with the cancellation by the Bank of Israel of the fee it charges the banks for that service;
4.       In general, a payment of NIS 1 million or more will be settled via the Zahav system, subject to the exceptions as published by the Bank of Israel. The maximum amount that can be transferred via the bank's automated clearing house ("Masav," its Hebrew acronym) will therefore be reduced from NIS 3 million to NIS 1 million.