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Changes in the organisation and operation of the payment incidents register of the national bank of Romania

Monitorul Oficial No 49 / 20 January 2012 has published Regulation No 1 / 2012, regarding the organisation and operation of the Payment Incidents Register of the National Bank of Romania.

The main provisions of Regulation No 1 / 2012 (the “Regulation”), regarding the organisation and operation of the Payment Incidents Register (“PIR”) of the National Bank of Romania (“NBR”) refer to the following:

– The Regulation defines payment incident as being an accountholder’s failure to appropriately fulfil his obligations while discounting payment instruments; such failure shall be reported to PIR by any person concerned.

– Risk-bearing entities are resident or non-resident natural or legal entities that have been recorded in the National File of Risk-bearing Entities, following the registration of one or several major payment incidents indicating their names.

– Obligor is a resident or non-resident natural or legal entity that is held liable for the obligation assumed when issuing or accepting a payment instrument; in the case of cheques, the obligor is the drawer, while in the case of bills of exchange (drafts) reference is made to the accepting drawee and when speaking about promissory notes, such obligor is the underwriter.

– A major payment incident covers the following situations:

  • In the case of cheques – Payment is rejected because:
  • the cheque has been issued without drawee’s approval;
  • cash is completely unavailable since payment is requested prior to the time of payment;
  • cash is partially unavailable  since payment is requested prior to the time of payment;
  • the cheque bears a false date;
  • the cheque has been issued by a drawer on which bank ban has been instituted.
  • In the case of promissory notes and drafts requiring the drawee to pay the drawer a sum of money at sight or at a fixed or determinable future time – Payment is rejected because:
  • cash is completely unavailable on the maturity date;
  • cash is partially unavailable on the maturity date.

– Bank ban is a prohibition imposed by a drawee (credit institution) on an accountholder to issue cheques over a one-year period as a consequence of a major payment incident involving cheques.

– Entities reporting to PIR are:

  • credit institutions (Romanian legal entities) supplying information on payment incidents caused by their accountholders or holders of accounts in their territorial units;
  • Romanian branches of foreign credit institutions, providing information on payment incidents caused by their own accountholders.

– The PIR database comprises:

  • National File of Payment Incidents containing payment incidents involving cheques, drafts and promissory notes, structured as follows:
  • National Cheques File
  • National Drafts File
  • National Promissory Notes File
  • National File of Risk-bearing Entities.

– The PIR information system may be accessed by accredited persons by using the name allocated to them by the National Bank of Romania.  Reporting entities may access the PIR database on a daily basis.

– The Regulation establishes the information system related to payment incidents as well as the transmission and recording of information on payment incidents.

– When a major cheque-related payment incident generating bank ban is recorded in the PIR database, the credit institution shall notify the accountholder of the ban imposed on him with a view to preventing the occurrence of any further payment incidents and to punishing such accountholder for having caused the incident in the banking system.  To notify the client of the bank ban, the credit institution shall forward a Warning to the accountholder.

–  The bank ban recorded in the PIR database may be suspended by the reporting entity on the strength of a court decision ordering the suspension of the ban.  Such suspension shall be recorded by the reporting entity on the day following the submission of the relevant court decision by the client.  The reporting entity shall not be responsible for not having enforced a court decision which has not been communicated to it.

–  The credit institution shall provide every client with applications containing personal identification data on the date following the recording of rejection in the PIR.

–  The information on payment incidents shall be maintained in the PIR database for seven (7) years after being recorded.

– Any reporting entity may request PIR to grant the right to its branches to research PIR database.  Branches may connect to PIR through their registered office taking the name allocated by NBR as a basis.

– When a reporting entity finds out that errors have been committed in relation to the information recorded in the PIR database, such entity may request that the errors should be remedied by using “Formularului de rectificare a informaţiilor înregistrate în baza de date a CIP” [Form Rectifying the Information Recorded in the PIR Database].

The reporting entities shall be liable for the genuineness and completeness of the information relating to payment incidents transmitted to PIR.

– PIR shall update its database by recording the cheques authorised by the NBR to be published and used.

– The Regulation specifies the monthly commissions which should be received by the PIR for its services, as well as the amount of fines applicable to reporting entities for failing to observe the Regulation provisions or apply its procedures regarding the information flow, i.e. the transmission, recording, organisation and dissemination of information on payment incidents.

– The reporting entities shall provide PIR with any information item required for its smooth operation.

The Regulation has come into full force and effect on 6 February 2012, when Regulation No 1 / 2001 of the National Bank of Romania, regarding the organisation and operation of the Payment Incidents Register, published in Monitorul Oficial al Romaniei, Part I, No 120 / 9 March 2001, as amended and supplemented, is abrogated.

LEGAL ALERT by Duncea, Stefanescu & Associates / MAZARS

* You may find Romanian, German and French versions of the newsletter in Mazars’ archive.

* LEGAL ALERT contains a selection of the latest major issues occurred in the Romanian legislative framework, is intended only to provide information and, hence, shall not be deemed to provide professional advice or consultancy. Therefore, we assume no responsibility in this respect.

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