His Excellency Sheikh Abdullah bin Saud Al Thani, Governor of Qatar Central Bank, inaugurated Monday QCB’s deposit and direct debit system "QATCH" which handles effectively the exchange of financial orders among banks in Qatari Riyals through a secure electronic network within the State of Qatar.
The aim of the new system launched at QCB headquarters and all banks operating in the State of Qatar on April 5, 2010 resides in updating one of the main elements of payment systems in the banking sector. It is considered one of the most important basic requirements necessary for the banking system stability and security.
“QATCH” system is also designed to find an effective means to manage the financial risk in payment systems in the banking sector and implement settlements and remittances securely in line with best international standards.
The Central Bank started to prepare for the installation of the system since last November as the project was completed in accordance with the contract concluded with a company that specializes in payment systems and has a unique expertise in developing payment systems, settlements and e-clearing under the supervision of QCB’s Banking Systems, Payments & Settlements Department. The introduction of the deposit and direct debit system in the banking sector will help to develop direct debit tools for the first time in the region.
The installation of this system will have a positive impact on the national economy as a whole by accelerating the economic cycle productivity and contributing to economic growth.
Other benefits for the citizen and the banking sector include reducing some bank services charges, enhancing the speed and accuracy in completing financial transactions, and reducing the risk of banking transactions and the credit risks in payment systems in addition to providing new modern services such as e-payment in order to increase the confidence of investors and users of banking services.
The direct debit operations include bill payments to service companies, and the payment of various periodic financial orders, loan installments and real estate installments, in addition to various tax payments. The direct deposit operations comprise the payment of the employees’ salaries at various government and private institutions, in addition to the government payments e.g. social security payments, subsidies, dividends and subscriptions to institutions.
Qatar Central Bank would like to convey its thanks and appreciation to the banking sector, encompassing all the banks operating in the State of Qatar for their good cooperation with the Bank to put this national system into operation.