What you need to know about the domestic payment operations
Domestic payment operations are comprised of payments in denars made by the participants in the payment operations through the institutions responsible for conducting payment operations.
Participants in the payment operations
are National Bank of the Republic of Macedonia, domestic banks being licensed to perform payment operations, branches of foreign banks, Treasury Department at the Ministry of Finance and Treasury department at the Health Insurance Fund, as separate participants in the payment operations.
Participant in the payment operations
may be any domestic or foreign, legal entity or individual performing registered activity or other individual who makes denar payments through the institutions responsible for conducting payment operations.
Payment system in the Republic of Macedonia offers efficiency, functionality and transparency in the way of conducting the financial transactions and connecting the legal entities with their banks. The payment operations rely upon the three settlement sub-systems, as follows:
- The NBRM system called MIPS is on the top of the pyramid, through which the interbank payments on high amounts (over 1 million denars) are executed and each individual transaction is settled in real time through the accounts of banks with NBRM. Therefore, this type of payment is more expensive and is used for payments on higher amounts and for urgent payments.
- The second settlement system is the Clearing House which is intended for execution of the credit payment orders (to 1 million denars), which are sent in packages, and the settlement is carried out at multilateral net principle. Settlement of the net positions of banks is exercised at the end of the working day in the NBRM system. Therefore this type of payment is used for execution of small and non-urgent payment orders. The funds processed through this system can be used by the beneficiary upon completion of the settlement.
- Payments between entities which are clients of the same business bank are settled through the internal payment system of the bank. These payments are the cheapest and are executed at the moment of processing of the payment order. The higher is the number of account holders with a bank the bigger is the possibility to use this payment system.
In the new payment system, legal entities may have an account with one bank and accounts with several banks. The number of the opened accounts of the legal entity is an important business decision, whose consequences do not only reflect on the extent of the costs of the payment operations but on the transparency and liquidity of the operation as well.
All the accounts opened with banks are registered in a register of the account holders (ERIS) kept by the Clearing House, to which all the banks are obliged to submit data from their register of account holders.
Payment instruments that are most frequently used in the domestic payment operations, prescribed by “the Guidelines on the form and contents of the payment instruments for conduct of the domestic payment operations” (Official Gazette of RM 43/2001 and 103/2001), are as follows:
Payment slip (form PP10);
Order for cash payment (form PP40);
Transfer order (form PP30);
Public revenue payment order (form PP50);
Total order for payment of the entire salary (form PP53)
When conducting the domestic payment operations you will need the following information as well: