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QuestionWhat is the Domestic Funds Transfer System? What is Zengin-Net and the Zengin System?
The Domestic Funds Transfer System is a system for conducting settlements between financial institutions, mainly in cases where individuals and firms request financial institutions to make funds transfers. The system is operated by the Japanese Banks' Payment Clearing Network (Zengin-Net). In addition, the interbank network system for operating the Domestic Funds Transfer System is called the Zengin Data Telecommunications System (Zengin System). Processing of data regarding financial institutions' exchange transactions, such as funds transfers and remittances, is conducted via the Zengin System Computer Center.
Of these transactions, large-value transactions equal to or larger than 100 million yen are settled on a real-time gross settlement (RTGS) basis via Bank of Japan (BOJ) account deposits, after necessary information required for settlements is sent from the Zengin System Computer Center to the Bank of Japan Financial Network System (BOJ-NET) for each payment instruction.
On the other hand, regarding small-value transactions less than 100 million yen, the Zengin System Computer Center aggregates and calculates each payment instruction, calculates the net settlement position of each financial institution, and sends these results to the Bank online. Based on this information, settlement is completed at 16:15 Japan Standard Time (JST) on the same day by crediting to or debiting from the BOJ accounts held by each financial institution and Zengin-Net.
The Zengin System originally operated from 8:30 to 15:30 on weekdays (from 7:30 to 16:30 on the last business day of the month, except for December). From October 9, 2018, with the launch of the More Time System, operating hours have been extended, enabling intraday interbank funds transfers of less than 100 million yen to be made to the account of the receiving bank on a real-time basis 24 hours a day, 365 days a year.
The Zengin System (Small-Value Transactions Less Than 100 Million Yen)
For the outstanding balance of transactions in the Zengin System, see Payment and Settlement Statistics released by the Bank on a monthly basis.