Since inter-bank transactions
involve Riba (interest), which is Islamically prohibited, therefore, such transactions are not Shari'ah compliant.
FATCA will affect almost all financial institutions and other entities in Bahrain with exposure to US taxpayers and other financial inter-bank transactions
The rise of transaction reversal fraud had caused so much concern that in January, National Payments Corporation of India (NPCI), the intermediary for inter-bank transactions
, asked all member banks of the National Financial Switch to disable the cash retraction facility from their ATMs.
During the last two months, six participating banks have settled around 100,000 inter-bank transactions
worth Rs 6.2 billion.
In the first phase banks will be able to use PRISM (RTGS) to transfer and settle inter-bank transactions
, This would enable banks to transfer inter-bank transactions
into beneficiaries' accounts on the same day.
In a statement, the central bank said that all purchases of foreign exchange 'shall be for the use of customers and shall not be used for inter-bank transactions
Rolf Schneebeli, former vice president of Citibank Switzerland and currently the economic adviser to ARY, said it would be prudent for governments in the GCC to guarantee inter-bank transactions
to at least get the financial markets running and kickstart the flow of credit to finance major projects and help financially battered individuals and private companies.
Since the introduction of real time gross settlement, in 1998, inter-bank settlement for the bulk (by value) of payment system and other inter-bank transactions
occurs throughout the business day.
"We use e-mail for the instant message but the funds are actually transferred in the way that banks settle all their inter-bank transactions
, such as cheques, ATM transactions and on-line bill payments, using the secure clearing procedures banks have used for ages."
"Where African banks have lagged woefully behind, however, has been in the establishment of electronic central processing systems for effecting inter-bank transactions
," he adds.
Under the SINPE system, all inter-bank transactions
are processed electronically.