System of Electronic Payments

The National Bank of Ukraine has created a national electronic payment system called SEP to process the hryvnia settlements between the banks and clients within Ukraine. The NBU is the payment system operator and settlement bank for SEP.

SEP ensures secure and reliable transfers of funds between the banks.

SEP services over 98% of interbank payments in Ukraine which makes it the systemically important payment system in Ukraine.

SEP is a real-time gross settlement system (RTGS international classification).

As of 1 April 2023, the new generation of SEP (SEP 4) was launched in operation based on ISO20022 international standard.

Now SEP operates 24/7 meaning around-the-clock interbank payment transactions without pausing the system and an instant shift from the current to the next calendar day

The NBU, Ukrainian banks, and the State Treasury Service of Ukraine are participants of SEP.

SEP processes 1.2 million payments per day on average, valued at UAH 653 billion. However, SEP processing potential is much higher: the system is capable of processing almost 10 times more transactions.

Legislation

The fundamental law defining the terms and the general procedure for executing payment transactions as well as operation of payment systems is the Law of Ukraine On Payment Services.

This law prescribes that SEP is the state-owned system of interbank settlements, and the NBU is the payment system operator and the settlement bank for SEP.

SEP operating procedure is defined by the National Bank of Ukraine.

Regulations

SEP rules

Regulations and technical documents on SEP operation:

Rates on services (operations) provided (performed) by the National Bank of Ukraine within the system of electronic payments and within the field of settlement and cash services are approved by NBU Board Resolution No. 333 of 12 August 2003 registered with the Ministry of Justice of Ukraine under No. 784/8105 on 10 September 2003, as amended;

Regulation On the Interbank Money Transfer in Ukraine in Domestic Currency During Special Period approved by NBU Board Resolution No. 576 dated 23 December 2003 registered with the Ministry of Justice of Ukraine under No. 39/8638 on 14 January 2004, as amended;

Instruction No. 163 On Cashless Payments in Domestic Currency in Ukraine approved by NBU Board Resolution dated 29 July 2022;

Regulation On Operation of Information Systems of the National Bank of Ukraine and Banks during Special Period approved by NBU Board Resolution No. 175 dated 21 April 2004 registered with the Ministry of Justice of Ukraine under No. 618/9217 dated 17 May 2004 (as amended by the NBU Board Resolution No. 39 on 2 February 2009), as amended;

Regulation On Ensuring the Continuous Operation of Information Systems of the National Bank of Ukraine and Banks of Ukraine approved by NBU Board Resolution No. 265 dated 17 June 2004 registered with the Ministry of Justice of Ukraine under No.857/9456 on 9 July 2004, as amended;

Instruction On the Interbank Money Transfers in Ukraine in Domestic Currency approved by NBU Board Resolution No. 320 dated 16 August 2006 registered with the Ministry of Justice of Ukraine under No. 1035/12909 on 6 September 2006, as amended;

Instruction On Emergency Operation of the Banking System approved by NBU Board Resolution No. 435 dated 22 July 2014 (as amended by NBU Board Resolution No. 349 dated 24 June 2016);

NBU Board Resolution No. 829 On Approval of Regulations on Information Security dated 26 November 2015;

Operating Procedure for the System of Electronic Payments of the National Bank of Ukraine;

Interface description between SAB and NBU SEP.

What is the System of Electronic Payments of the National Bank of Ukraine (SEP)?

The System of Electronic Payments of the National Bank of Ukraine (SEP) is a systemically important payment system, which was developed by the NBU to enable interbank money transfers in the domestic currency within Ukraine via accounts opened with the NBU.

What is the deadline for payment transactions?

In line with Article 47 of the Law of Ukraine On Payment Services, after accepting a payer’s payment order, a payment services provider is required to execute that payment order within one operational day.

The payment services provider of a payee is required to credit the payment transaction amount to the payee’s account or to pay the payment transaction amount in cash on the operational day the amount was credited to the payee’s payment services provider.

The timeframe for executing payment transactions in payment systems shall be established by the rules of payment systems, but may not exceed the terms set out in the Law of Ukraine On Payment Services.

Payment service providers and users have the right to determine in the payment service agreement other timeframes for executing payment transactions and/or terms for available funds in line with the Law of Ukraine On Payment Services.

Operating day stands for the day during which a payer’s payment services provider or payee’s payment services provider executing the payment transaction operates in order to execute payment transactions.

What document provides for the terms of participating in, joining, and quitting SEP?

Instruction On the Interbank Money Transfers in Ukraine in Domestic Currency approved by NBU Board Resolution No. 16 dated 13 March 2023.