JBA released the Report “Laying the Groundwork for Utilizing Electronically Recorded Monetary Claims” on March 18.
Since the enactment and promulgation in June 2007 of the Electronically Recorded Monetary Claims Act, JBA has been deliberating how to utilize electronically recorded monetary claims and prepare for them. The results of these deliberations were compiled in the report as outlined below.
JBA established the Task Force for Establishing an Electronic Monetary Claims Recording Institution in the Secretariat to deliberate and prepare for establishing an electronic monetary claims recording institution. This was done in addition to establishing a Working Committee under each of the Planning, Business, and Operations Committees from April 2008.
Part 1: Organization (Desirable electronic monetary claims recording institution)
- The electronically recorded monetary claims system may possibly develop into an important payment infrastructure similar to the current clearing system. The system is essential to secure the simultaneous execution of the recording of payment, etc. and settlement. These reasons make it essential to establish a recording institution that represents all banks and enables banks to function as a fund collector between the recording institution and users.
- The decision of when to transfer over to the system requires consideration of the extent the Zengin System is utilized for this purpose, its affects, social conditions/needs, resources necessary for system development including at participating financial institutions, and stable system operations.
- A Council for Promoting the Utilization of Electronically Recorded Monetary Claims” (tentative) should be established with user companies and experts as members to promote the system and educate users.
Part 2: Business (Discussion points concerning the business and practices of electronically recorded monetary claims)
- The report presents the results of the deliberations on ten discussion points concerning the business and practices. The discussions were based on the premise that the transaction type of electronically recorded monetary claims is similar to that of notes and bills. The discussion points include (1) settlement, (2) use/participation rule for users and participating financial institutions, (3) requests for records, (4) transfer/partitioning of electronic records, and (5) correction/recovery of electronic records.