BAHTNET members are required to maintain deposit current accounts at the BOT Bank of Thailand and agree to comply with the Bank of Thailand regulation on’s BAHTNET servicesregulation B.E. 2549 which indicates the dutiesauthority and scope of responsibility betweenof the BOT, as a service provider, and the members.

Moreover, the regulation specifies the types and guidelines of the services. In case of a third-party Ffunds transfer, in which a commercial bank offers its customer the service to transfer funds via BAHTNET to a receiver’s account at another bank, the service must comply with BAHTNET Funds Transfer Guideline for Commercial Bank’s Customer Service to ensure fairness to customers. In the event of unresolved dispute, the matter will be submitted to the arbitrators. eEach party will appoint one arbitrator, and the two arbitrators will together appoint an outsider as a neutral arbitrator.

BAHTNET Mmembers can access BAHTNET system via two channels as follows:

1. S.W.I.F.T network which is an international financial telecommunication network, in which members are required to send messages in accordance with S.W.I.F.T standards (Society for Worldwide Interbank Financial Telecommunication) message standard . However, mMembers who use S.W.I.F.T system can improve internal work system develop internal system to link directly with the BOT Bank of Thailand directly as in Straight-through Processing (STP).

2. BOT WEB PORTAL in Electronic Financial Services (EFS) system fromprovided by the  BOTBank of Thailand, which requires members to send messages according to the standard that Bank of ThailandBOT has developed in accordance with S.W.I.F.T message standards. However, all BAHTNET members, both S.W.I.F.T and non-S.W.I.F.T. members, are required to install BAHTNET Web Service to makerequest inquiry of account balance, view activity ofmovement of deposit or bond’s accounts as well as to manage transaction queue for transactions that wasare submitted via BAHTNET and end-of-day reports.

Apart from the above, the Bank of ThailandBOT is in the process of developing additional channels to link BAHTNETinternal systems and with other related Financial Market Infrastructures onvia Straight -Through Processing (STP) basis byusing  API technology.

BAHTNET system operates on bank’s working days from 8.30 a.m. to 5.30 p.m., offering the following services:

1. Funds Transfer

Members can transfer funds from their deposit current account at the Bank of ThailandBOT to other member’s account or transfer between their own accounts at the Bank of ThailandBOT.

2. Third Party Funds Transfer

Members are able tocan transfer funds on clients’ order, from the client’s account to a beneficiary account at another bank. The transfer of funds is conducted on the a same day basis.

3. Inquiry

Members are able tocan use BAHTNET system to requestaccess to their account information such as account balance, account activity movements,  and inquire the status of itemstransactions in queue and those that are already processed.

4. Bilateral Communication

Members are able tocan communicate with other members via BAHTNET at any time during operating hours.

5. Message Broadcast

Members are able tocan receive messages broadcasted from the Bank of ThailandBOT broadcast to all membersusers. This feature also allows each member to broadcast messages to all members uponby submitting request to the Bank of ThailandBOT.

6. Multilateral Funds Transfer - MFT

Members can request to use Multilateral Funds Transfer service from the BOTank of Thailand to make settlements on net settlement basis. This function allows simultaneous debit/credit funds transfers for daily settlements. These settlements are will be settled in net settlement basis format such asFor example, Ccheque clearing and funds transfer  clearingsystem.

BAHTNET system is a real-time funds transfer system that is irrevocable. It requires a greater level of liquidity than the traditional net settlement system., tTherefore, the transferor must have an adequate amount of funds in the account at the BOT to successfully processsubmit a funds transfer order.

To provide more efficient liquidity management for members, the BOTank of Thailand is offering Intraday Liquidity Facility (ILF) to BAHTNET members which are financial institutions under the Bank of ThailandBOT supervision. To apply for ILF usage, each member is required to submit letter of agreement to sell their securities to BOT at the beginning of business day and stating that the member will buy back those securities at the end of the day. ILF granted for each member depends on his collateralized securities with no charge for usage during the business day. However, BAHTNET members canare entitled to activate ILF only when they have insufficient balance in their current accounts and ILF can be used for transaction settlement via BAHTNET system only. In the case of overnight use of ILF, the Bank of ThailandBOT will charge compensation to default members by applying policy rate plus 0.5 per annum.

However, in the event that the transferor may faces momentary liquidity shortage causing funds transfer order to be halted, BAHTNET utilizes mechanisms to handle this situation as follows

1. A Queuing Mechanism is used in case of member having insufficient funds in the account, the funds transfer requestorder will be placed in a queue until there are sufficient funds in the account to cover the funds transfer order. Then, the funds transfer order will be proceeded in accordance with the liquidity of that moment.

2. An Automatic Gridlock Resolution is used in case a funds transfer order is in the queue but unable to settle due to liquidity shortage. The system searches the queue for a combination of funds transfer orders that have a manageable net clearing position, in which casethen these fund transfer orders are recorded and executed simultaneously.  ​

The Bank of ThailandBOT developed the BAHTNET system as a financial infrastructure to increase efficiency and reduce systemic risks withinof the payment system. There is no profit motive. In fact, the BAHTNET fee structure is meant to enticemotivate potential users to utilize electronic funds transfers and move away from paper-based system.

The fees that the member banks charge their customers is freely led by free market mechanism, but the Bank of ThailandBOT initially set ceilings to limit the fees within a reasonable range. However, the BOT lifted such requirements to promote the competition between financial institutions according to Bank of Thailand notification BOT. PSG (03) C. 3414/2543 Tthe Removal of Third PartyThird Party Funds Transfer Ceiling Fee 7 December B.E. 2543. As a result, fees are set according to each member’s considerations.

1. Monthly service fees are as follows:

• BAHTNET Direct member                     3,500 Baht
• BAHTNET Associate member                   500 Baht

2. Fees for differenteach types of services via BAHTNET and other requesttransaction via RTGS-DVP Linkage systemthe network system for securities settlementpayment

• BOT will determine fees and fines of each service type according to the transaction amount and settlement time. 

BAHTNET system is designed for high-value funds transfer, thus the BOTBank of Thailand  has implemented high security measure, given that members transmitting messages to BAHTNET system via S.W.I.F.T. channel must apply security standard of S.W.I.F.T., which is an internationally accepted standard.

For members transmitting messages to BAHTNET via EFS WEB channel, there will beis a security control system using Digital Signature Technology in which the member is required to have the Private Key in their tokens to create Digital Signature for verifying their activities electronically in BAHTNET system. With this technology, BAHTNET is capable of assuring members with integrity, confidentiality, and authentication. BAHTNET also system verifies the completeness and accuracy of information that is being sent in the system andand includes continuous audit trail for all transactions to be kept as evidence. 

BAHTNET is a system with system has a self risk-prevention measure since the transfer of funds it is conducted aon RTGS transferbasis that is real-time, final, and irrevocable. Furthermore, the queuing mechanism for prioritizing fundsmanaging transfer orders helps minimize the risks in the BAHTNET system compared to other systems. Additionally, the Bank of ThailandBOT has set a measure calledled Securities Requirement for Settlement: SRS which aims to reduce settlement risk for Nnet Ssettlement.

The Bank of ThailandBOT set up a replicated backup site around 50 kilometers away from the main site providing identical backup hHardware and sSoftware tools and equipment identical to those used at of the mainactual systemsite to ensure continuousuninterrupted operation in case of system failure or any problem. In addition, the Bank of ThailandBOT has prepared a contingency plan to handle failure scenarios, both from the BOT and member sides. These security measures can ensure the members of a highly secured and highly effective service.