BAHTNET members are required to maintain current accounts at the BOT and agree to comply with the Bank of Thailand regulation on BAHTNET services B.E. 2549 which indicates the authority and scope of responsibility of 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 funds 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. Each party will appoint one arbitrator, and the two arbitrators will together appoint an outsider as a neutral arbitrator.

BAHTNET members can access BAHTNET 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  (Society for Worldwide Interbank Financial Telecommunication) message standard. Members who use S.W.I.F.T system can develop internal system to link directly with the BOT as Straight-through Processing (STP).

2. BOT WEB PORTAL in Electronic Financial Services (EFS) provided by the BOT, which requires members to send messages according to the standard that BOT 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 request inquiry of account balance, movement of deposit or bond accounts as well as to manage queue for transactions that are submitted via BAHTNET and reports.

Apart from the above, the BOT is in the process of developing additional channels to link BAHTNET with other related Financial Market Infrastructures on Straight -Through Processing (STP) basis using API technology.

BAHTNET 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 current account at the BOT to other member’s account or transfer between their own accounts at the BOT.

2. Third Party Funds Transfer

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

3. Inquiry

Members can use BAHTNET to access to their account information such as account balance, account movements, and inquire the status of transactions in queue and those that are already processed.

4. Bilateral Communication

Members can communicate with other members via BAHTNET at any time during operating hours.

5. Message Broadcast

Members can receive messages broadcasted from the BOT to all members. This feature also allows each member to broadcast messages to all members upon request to the BOT.

6. Multilateral Funds Transfer - MFT

Members can request to use Multilateral Funds Transfer service from the BOT to make settlements on net settlement basis. This function allows simultaneous debit/credit funds transfers for daily settlements. For example, cheque clearing and funds transfer clearing.

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

          To provide more efficient liquidity management for members, the BOT is offering Intraday Liquidity Facility (ILF) to BAHTNET members which are financial institutions under the BOT 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 are entitled to activate ILF only when they have insufficient balance in their current accounts and ILF can be used for transaction settlement via BAHTNET only. In the case of overnight use of ILF, the BOT will charge compensation to default members by applying policy rate plus 0.5 per annum.

However, in the event that the transferor may face 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 order 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, then these fund transfer orders are executed simultaneously.

The BOT developed the BAHTNET as a financial infrastructure to increase efficiency and reduce systemic risks of the payment system. There is no profit motive. In fact, the BAHTNET fee structure is meant to motivate 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 market mechanism, but the BOT 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 The Removal of Third Party Funds Transfer Ceiling Fee. 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 each type of services via BAHTNET and other transaction via RTGS-DVP Linkage system for securities settlement

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

BAHTNET is designed for high-value funds transfer, thus the BOT has implemented high security measure, given that members transmitting messages to BAHTNET 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 is a security control 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. With this technology, BAHTNET is capable of assuring members with integrity, confidentiality, and authentication. BAHTNET also verifies the completeness and accuracy of information that is being sent in the system and includes continuous audit trail for all transactions to be kept as evidence.

BAHTNET is a system with risk-prevention measure since the transfer of funds is conducted on RTGS basis that is real-time, final, and irrevocable. Furthermore, the queuing mechanism for prioritizing funds transfer orders helps minimize the risks in the BAHTNET compared to other systems. Additionally, the BOT has set a measure called Securities Requirement for Settlement: SRS which aims to reduce settlement risk for net settlement.

The BOT set up a replicated backup site around 50 kilometers away from the main site providing backup hardware and software equipment identical to those used at the main site to ensure continuous operation in case of system failure or any problem. In addition, the BOT 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 effective service.