The Real Time Gross Settlement System (AZIPS) – is a real-time system where transfers are processed separately per payment instruction. Settlements in the AZIPS are conducted in the national (the Azerbaijani manat – AZN) and foreign currencies. The system receives payment instructions from participants from 09.20 to 17.00. Transactions are conducted against the funds of participants in correspondent accounts opened with the CBA and funds received from other participants. In the event of lack of funds in correspondent accounts, payment instructions are kept in a pending list and processed on a FIFO basis. Pending payment instructions may be recalled by participants and priorities may be changed. In the event of lack of funds, pending documents are automatically annulled over a day and participants are informed accordingly. Over a day participants are informed on transactions conducted in their correspondent accounts, pending documents and balances on the basis of their inquiries. Participants may send payment instructions to the system 10 days in advance with the future value date.
The operation day is closed from 17:00 to 17:45 and participating organizations receive excerpts on transactions conducted in correspondent accounts. However, the transaction may be prolonged on the basis of the procedures provided for in the system procedures at the appeal of one or several of the participants. Exchange of information in AZIPS is maintained over the Closed Telecommunication Network in parallel to the SWIFT. Activities of any participant may be switched from one network to the other at its request any time over a transaction day. The process managed by the central system does not influence other participants’ activities.