On changes to procedures for Bank of Russia deposit operations
Aiming to streamline the technology of deposit operations available to credit institutions and enhance their ease of use, the Bank of Russia introduces changes, effective 17 May 2018, to their standard operating procedures.
Effective from the above date, the updated deposit product line will no longer include several low-demand products, viz., tom-next, spot-next and on-demand deposits. It will only include deposit auctions1 and overnight deposit facilities (deposit transactions for one working day with same-day settlements).
The procedure for overnight deposit facilities will be streamlined: with order exchange no longer needed, credit institutions will be able to immediately credit funds to their Bank of Russia accounts. The above operations will also be conducted in updated timeframes, allowing funds to be transferred to a deposit account (under overnight operations) before close of business in the Bank of Russia payment system2. The procedure for deposit auctions remains unchanged.
Changes have also been made to the regulatory framework of Bank of Russia deposit operations. To enable a more flexible and prompt updates to the deposit operations procedures, the new arrangements are not enshrined in a regulatory act. They are set forth in The Rules of Bank of Russia Deposit Operations, an integral part of a ‘contract for general terms of deposit operations’ which the Bank of Russia concludes with its customer credit institutions.
The contracting procedure as regards customer banks has also been simplified: credit institutions will no longer be required to submit preliminary contract offers to the Bank of Russia. This means that a credit institution wishing to make a Bank of Russia deposit operations contract will only be required to complete a contract template, sign it and submit to the Bank of Russia for signature. A change in bank details will not entail the need for supplement agreements. The customer organisation will only need to notify the Bank of Russia of such change. Following the Bank of Russia’s confirmation of receipt of such notification, the contract will be deemed amended accordingly.
Furthermore, a complete transition to e-document flow under such operations is envisaged. Stage one of this transition will extend to auction operations. Starting from 17 May 2018, when the contract for general terms of deposit operations and the Rules of Bank of Russia Deposit Operations become effective, document exchange related to deposit auctions between credit institutions and the Bank of Russia will only occur in electronic format3.
Effective from 17 May 2018, Bank of Russia deposit operations will only be conducted in compliance with the contract for general terms of deposit operations and the Rules of Bank of Russia Deposit Operations4. The Bank of Russia therefore advises as follows. Credit institutions wishing to take part in Bank of Russia deposit operations are requested to conclude new contracts for general terms of deposit operations, in a prompt manner.
| 1 Fine-tuned auctions with a 1 to |
| 2 The Bank of Russia reserves the right to change the schedule of overnight deposit operations in individual cases. |
| 3 Credit institutions using an e-document flow based on the Thomson Reuters system and the Moscow Exchange E-trading system for the purposes of deposit auctions may continue to do so. |
| 4 Deposit operations within the meaning of Bank of Russia Regulation No. |
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