The Gyro Clearing system is an interbank clearing system for transactions in the amounts lower or equal to 10,000.00 of convertible marks. The system includes the participants authorized to perform payment operations as well as the Central Bank of BH. The transactions processed through the Gyro Clearing are performed on the same day when they are received in the settlement cycle which they were sent to. The clearing of payment orders of all the Gyro Clearing participants is carried out by defining the net position of each individual participant as a result of the settlement of all credits and debits of participants for each clearing cycle.

The collecting of orders, the clearing and settlement of net positions is carried out through the stages in certain time periods, according to the Gyro Clearing Operative Rules and the Decision on the Schedule of Operations and Daily Activities in Gyro Clearing.

The settlement of net positions of Gyro Clearing participants is carried out at 09:30, 11:30, 13:30 and 15:30, and it is carried out through the settlement accounts in RTGS, according to the Decision on Defining the Operative Rules of RTGS. The settlement is considered final and irrevocable at the moment when the net positions of all the participants are executed in settlement accounts in RTGS.

A decentralized Gyro Clearing network is used in Bosnia and Herzegovina. It means that there are three Gyro Clearing branches (the Gyro Clearing of the Sarajevo Main Unit – Gyro Clearing Sarajevo Branch, the Gyro Clearing of the Main Bank of RS CBBH – Banja Luka Gyro Clearing Branch, and Gyro Clearing of Mostar Main Unit- Gyro Clearing Mostar Branch), and the central Gyro Clearing – Gyro Clearing Centre, located in the CBBH Head Office.

Participants direct their orders towards:

a)      Gyro Clearing centre –for orders to banks with opened reserve accounts in an organizational unit of the Central Bank different from the one in which the order sending bank has an open reserve account and

b)      Gyro Clearing branch – for orders to banks with opened reserve accounts in the organizational unit of the Central Bank which is the same as the one in which the order sending bank has an open reserve account, as it follows:

-          Gyro Clearing branch Sarajevo – banks with reserve accounts with MU  Sarajevo,

-          Gyro Clearing branch Mostar – banks with reserve accounts with MU Mostar and

-          Gyro Clearing branch Banja Luka – banks with reserve accounts with the MBRS Banja Luka and Pale Branch.

c)      The orders in favour of the Central Bank are sent to Gyro Clearing centre.

The SEPA message format is used in Gyro Clearing, which is in accordance with ISO 20022 and the version of the European Payment Council Rulebook, which  the Central Bank determines as the applicable one for internal credit payments and notifies the participants accordingly.

The Central Bank of BH has created a banking-telecommunication network for the needs of Gyro Clearing, so all the participants are connected by telecommunication lines to Gyro Clearing branches and Gyro Clearing Centre.

The Central Bank of BH has passed operative rules for Gyro Clearing defining the conditions under which the Central Bank of BH and participants are admitted into the Gyro Clearing system.

The operative rules for Gyro Clearing define the rights, obligations and responsibilities of the Central Bank of BH related to the Gyro Clearing operations, conditions for the participation in Gyro Clearing, the rights, obligations and responsibilities of Gyro Clearing participants, the way and procedures for clearing and settlement, and procedures in cases when the participant in Gyro Clearing is not able to meet its obligations.

The Central Bank of BH charges to the participants the costs of service of executing payment transactions through Gyro Clearing system, and also a fee for the participation in payment systems according to the applicable fee tariffs of the Central Bank of BH. The charging is carried out by debiting the participants’ reserve accounts with the relevant main unit or branch of the Central Bank of BH.

In order to provide the constant availability of the payment system through Gyro Clearing, the Central Bank of BH has prepared contingency plans including the procedures and measures for continuing reliable, proper and legal operations of Gyro Clearing, within the maximum time of two hours. In case the Gyro Clearing branches are unavailable, participants send orders to Gyro Clearing Centre.