Activity of the Republic of Azerbaijan in the field of payment systems conducts by Payment Systems and Settlements Department, structural entity of the Central Bank of Azerbaijan.
Mission of Payment Systems and Settlements Department is creation of up-to-date digital payment systems, arrange their constant and incessant operation, provide stable development and improvement considered international tendencies occured in this direction.
Central Bank of Azerbaijan conducted large range of reforms in the direction of creation and development of the National Payment System during last ten years by use of technical assistance and financial support of international financial organisations on the basis of international practice.
Conseptual principles and strategy of National Payment System creation were prepared in the National Payment Council in 1998.
Large-value payment system (AZIPS) serving as a basis of the National Payment System structure was created and put in use in the beginning of 2001. As a result of use of AZIPS system it was possible to realize on-line interbank transactions, considerable increase of money circulation intensity, quick control over liquidation by banks.
AZIPS system has Y architecture constructed on the basis of SWIFT network, ensures high security level of information exchange and meets modern standards. All banks acting in our country are members of General State Treasurer.
In the basis of National Telecommunications Network there was created and put in use the second main element of National Payment System structure Retail Payment System (BCSS) since end of 2002. Thus there was created favourable basis for realization of integration of public utility enterprises those are main participators of retail payments (salaries, social securities, phone, gas, water, electricity etc. retail payments), Governmental entities holding payment operations (e.g. tax, customs and social securities) in great amounts with digital data stores.
BCSS has been developed in the basis of National Telecommunications Network, provides high security level of exchange of information and meets modern standards. All banks in our country, General State Treasurer, Azerbaiajn Mortgage Fund, Nakhichevan Department of the National Bank are members of the system.
In the purpose to provide reliable and stable activity of AZIPS and BCSS systems in the state of emergency there have been created reserve entities of them in Sumgayit Reserve Center. There has been realized exchange of information between servers of the systems allocated in main and reserve centers.
“State Programme on Development of National Payment System in the Republic of Azerbaijan in 2005-2007” was affirmed by Instruction of the President od Azerbaijan dated on December 9, 2004 taking into consideration enlargement and of reforms held in the field of payment systems directing to regions, more active use of National Payment System opportunities, creation of digital payment area throug whole country, necessity of increase of individuals and juridical persons access to financial services.
Activities on creating National Card Processing Center were completed and put to use and supervision of 18 banks functioning in our country for development of card payments in the country and completion of structure of National Payment System according to the State Programme.
In regard with increase internal information system of public utilities enterprises to the level of international standards and fulfillment of completing technology integration in payment structure system collecting fee for public utilities there was created Centralized Information System of Mass Payments (CISMP) and from 11 July 2008 put into operation. By means of the system the enterprises of public utilities joined to CISMP it’s possible to make payments both by cash and by means of ATM or using belonging to CISMP payment cards of “Internet Service”.
Cooperation in the field of adaption and development of payment systems with international financial institutions, central banks of developed European countries, including CIS countries central banks constantly enlarges and held exchange of experience.Members of Department participates in the meetings held with the participation of CIS countries, and also in meetiings held by Turkish Central Bank and ICB with paticipation of East Europe countries in the crew of “Initiation group in the field of CIS countries payment systems and interactions system on stocks” (CISPI).In the frame of World Bank project “Initiation group in the field of CIS countries payment systems and interactions system on stocks” there has been prepared the book named “Payments and securities clearance and settlement systems in Azerbaijan (Silver book)” and published by World Bank.
Achivements gained by the Central Bank in the field of payment systems were highly appreciated by various international organisations and these achivements attracted attention of some central banks. So that in purpose of getting acquainted with the reforms held in payment systems and to exchange experience, representatives of Kirgizistan and Georgia Central Banks, Central banks representing 6 African countries (Chad, Camerun, Congo, Central African Republic, Gabon, Ecuatorial Gvinea), representives of Oman Central Bank and Algerian Central Bank have been in the National Bank and get acquainted with opeartion principles of AZIPS and BCSS.