The National Bank of Hungary (NBH) has invited comments for its plan to limit the time for the completion of paperless money transfers to four hours starting July 1, 2012. The new limit would apply only to forint transfers.
The NBH published the draft of the relevant amendment to its decree on money turnover on its website on Monday.
Currently, Hungarian banks must complete domestic paperless forint transfers with next day (T+1) settlement, if the sender initiated the order before the initiating bank’s cut-off time — the time before which it accepts transfer orders as those having arrived on the given day — and the receiving account is at a different bank. The cut-off time may not be earlier than two hours before the bank’s closing time.
The transfer must be completed on the same day if the accounts of the sender and the receiver are at the same bank.
Transfers initiated on paper must be completed with T+2 settlement at the latest.
Currently, the bulk of non-urgent transfers are completed with settlement in one day.
NBH officials told Econews that shortening the time for completing paperless transfers would require developments at interbank clearing house Giro..