EFT Connect

The Central Bank of the Republic of Turkey operates and manages EFT, Turkey’s national Real-Time Gross Settlement (RTGS) system. The first generation of the network was launched in April 1992. It was reconstructed and updated by a second-generation system in 2000. The third EFT iteration was developed and made operational in 2013.

ETF processes domestic transactions in Turkish Lira (TRY) regardless of value. As of date, the network has 50 direct participants. All members must have a settlement account at the Central Bank.

The current version of the ETF network is divided into two functional parts:

• Payments System of Customer Payments – settles customer payments in TRY;
• Payments System of Interbank Payments – settles interbank and international bank payments in TRY;

Both subfunctions operate using software developed by the Central Bank of the Republic of Turkey.

The Istanbul and Ankara Clearing Houses (ICHs) work in tandem as a deferred net settlement system for cheque payments in TRY. Every bank (40 in total) that issues cheques in Turkey are part of the ICHs.

Owned by its member institutions and banks, the Interbank Card Centre (BKM) operates a deferred net settlement network for card payments in TRY. It has 27 participants.

non-EFT participants use a giro system operated by the Central Bank. The system processes a limited number of credit transactions between its 21 branches on a real-time basis.

International payments are executed through SWIFT via correspondent banking arrangements.