Sunday, February 5, 2017

What are the functions of the CIPS (Phase I)?

The main functions of the CIPS (Phase I) are to facilitate processing of cross-border RMB business and to support settlement of cross-border trade in goods and services, cross-border direct investment, cross-border financing and cross-border individual remittance.

The CIPS (Phase I) has main features as follows: First, the CIPS (Phase I) processes remittance of individual customers and financial institutions on a real-time basis and in full amount. 

Second, through one-point access, direct participants can enjoy centralized clearing service, shortened clearing path and more efficient clearing.

Third, the CIPS adopts the internationally accepted ISO20022 message standard and uniform Chinese four-corner codes; transmission in Chinese and English is supported; settings of fields such as name, address, charging etc. better facilitate the automatic processing of RMB business.

In terms of message design, CIPS takes full considerations of the conversion requirements with the current SWFIT MT messages and thus, facilitates STP (straight through processing) of cross-border business and supports future business development. Fourth, running hours of the CIPS covers all major time zones in Asia, Europe, Africa and Oceania. Fifth, direct participants in Mainland China are connected to the system via special lines.

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