Retail Payment Systems
In the OIC Member Countries
83
accounts held with correspondent banks abroad. There are approximately 49 direct
participants in TIC-RTGS, 48 direct participants in the RPS, 41 direct participants in the ICHs,
and 28 participants in the BKM.
TIC-RTGS processes all high-value and urgent TRY-denominated electronic credit transfers.
There is no value threshold. In addition, TIC-RTGS effects the final settlement of participants’
net balances originating from the BKM and ICHs. The RPS processes domestic retail transfers.
The ICHs process domestic cheque payments and promissory notes. The BKM processes all
card payments involving its participants.
TIC-RTGS settles transactions individually in real time and with immediate finality. Payment
instructions are exchanged online from 08:30 TST on Monday morning. Banks transmit
payment instructions to the system via TICNET, a private telecommunications network owned
by the Banks Association of Turkey. The KRED-SWIFT payment message was introduced in
2007. Final settlement takes place across the participant banks’ correspondent accounts at the
Central Bank. Retail payments are settled individually in real time with immediate finality.
Final settlement takes place across participants’ accounts held at the Central Bank.
Cheques are MICR-encoded before being processed via the ICHs. Final settlement takes place
across special ICH settlement accounts held at the Central Bank via TIC-RTGS. Card payments
are cleared by the BKM before the net balances of each member are forwarded to the Central
Bank. Final settlement takes place across special settlement accounts held at the Central Bank
via TIC-RTGS.
Retail Payment Systems
Credit transfers are used for both high-value and low-value payment transactions. Electronic
credit transfers are used by companies for salary and supplier payments. Credit transfers can
be initiated via a bank branch, ATM, telephone or online. High-value and urgent credit
transfers are cleared and settled via TIC‑RTGS in real time. Low-value, non-urgent and high-
volume credit transfers are processed via the RPS in real time. Credit and debit transfers
accounted for over 96% of the value of all cashless payments in 2011, but just 4.7% of the
volume. Direct debits are available in Turkey but not widely used. Direct debits are cleared and
settled via the RPS.
Cheque use in Turkey is in decline due to the increasing preference for electronic payments for
both high-value and low-value transactions. Cheques are principally used for large-value
corporate payments. Cheques are MICR-encoded and processed electronically via the Ankara