In January 2020, the banking industry plans to introduce a new solution for instant retail payments (NICS Real). During a pilot period, a few banks will use the new solution upon agreement with Bits AS before the solution is made available to all banks participating in NICS.

The new payment solution requires changes to the settlement procedures in Norges Bank’s Settlement System (NBO). In particular, changes are required in the rules on payment settlement in Chapter 3, cf Section 3.2 The point in time where a payment order is entered into and finally settled and Section 3.4 Settlement in Norges Bank for payment orders through NICS.

In connection with these changes, Norges Bank is also making a number of other modifications of the Terms and Conditions in addition to those relating to the new solution for instant retail payments. These mainly relate to the following sections:

• The terms Settlement day and Settlement date replace the terms Business day and Business date respectively (cf Section 1.4).
• Rules on contingency solutions all appear in Chapter 4.
• A requirement is introduced for the bank to confirm correct balance on its accounts with Norges Bank when the enhanced contingency mechanism for NBO is activated (cf Section 4.2).
• Banks’ use of test keys as a contingency solution when submitting orders to execute payments, withdrawals of notes and coins in a contingency situation and changes in its collateral for loans, is now regulated in the Terms and Conditions instead of in a separate agreement with each bank (cf Section 4.3).
• Banks’ use of the Scandinavian Cash Pool is now regulated in the Terms and Conditions instead of in a separate agreement with each bank (cf Section 5.8).
• The provisions on liability for losses have been clarified (cf Section 6.1).

In addition to the above, some sections have been moved and some linguistic improvements have been made.

The revised Terms and Conditions were circulated for comments to all banks holding an account with Norges Bank, Finance Norway and Bits AS in a letter of 19 September 2019 from Norges Bank. On the basis of the comments received, a modification has been made to Section 3.2 so that a payment order stemming from a clearing in NICS Real is considered entered into NBO at the point in time NICS Real credits the real-time liquidity of the bank of the payment receiver.

The revised Terms and Conditions for Account Management at Norges Bank (NBO) - Banks enter into force on 15 December 2019 and replace the current Terms and Conditions of 1 January 2019 (cf Circular 6/2018).

A new Norges Bank Act enters into force on 1 January 2020. In this connection, the legal basis for the Terms and Conditions will be adapted to the new Act, cf Section 1.1 of the Terms and Conditions. The same will apply when a new Regulation on the access of banks to borrowing and deposit facilities at Norges Bank etc. enters into force in 2020.