Director General of the department Mr. Anar E.
Within the framework of ensuring financial stability and the effective implementation of monetary policy, the following functions shall be carried out with the objective of developing the National Payment System in compliance with international standards, overseeing the activities of all participants in the payment system, introducing advanced technology-based payment instruments, ensuring the continuous and reliable operation of the payment system, as well as developing and modernizing the Bank of Mongolia’s core banking systems, information systems, software development, and information technology infrastructure, while ensuring information and cybersecurity, operational continuity and reliability, and making technology advancements accessible to all employees.
Policy and Operation Division
The Policy and Operation Division within the framework of the Law on the National Payment System is responsible for defining the policy and direction of Mongolia’s payment system, as well as drafting and approving the rules and instructions to be followed by participating institutions. It also studies international best practices and through cooperation with global organizations, creates the regulatory environment for the introduction of innovative payment instruments and services, supporting them through policy measures.
- Develop and update policies, legal frameworks and rules to regulate payment system operations in line with international standards. Define and regulate governance, operations, customer relations, interoperability and requirements for payment service providers, issuers of payment instruments, operators and participants.
- Ensure the stable, smooth, reliable and efficient operation of the high-value transactions “RTGS”, the international settlement network “SWIFT” and the securities registration and depository system “DEPOX”, thereby facilitating payment settlements.
- Organize the activities of the National Payment System Council, approves the work plans, ensure implementation, annual meeting and coordinate the enforcement of decisions in cooperation with stakeholders.
- Develop and expand cooperation with market participants in the payment services sector, central banks of other countries and international institutions.
Oversight Division
The Bank of Mongolia oversee the implementation of regulations, rules, and decisions appropriate governance, management, operations, relationships with users, and connectivity between systems related to payment service providers, issuers of payment instruments, persons authorized to conduct activities related to the provision of payment services, and operators. The purpose of such monitoring is to limit system risk, meet consumer and economic needs, and ensure that it operates reliably and efficiently.
Key functions:
- Oversees the national payment system and its operations by conducting on-site inspections, preparing oversight reports, and implementing appropriate measures, as well as issuing recommendations and conclusions to ensure the overall effectiveness, integrity, and stability of the country’s payment systems;
- Ensures that payment service providers and operators comply with all the regulations and rules issued by the Bank of Mongolia;
- Issues relevant licenses, as stipulated in the Article 10.1 of the Law on National Payment System, and oversees the activities of the payment service providers and operators;
- Assesses the central securities depository system and the activities of remittance in accordance with the principles and methodologies developed by international organizations; identifies gaps, and ensures that necessary actions are taken to fix it, if necessary;
- Ensures that equipment, hardware and software, confidentiality, security, and risk management procedures of the payment service providers and operators comply with the requirements stated in the laws, rules and regulations; assesses compliance with laws and standards, and takes relevant measures to eliminate detected violations, if any;
- Prepares reports and surveys related to the operation of the payment system, publishes annual payment systems oversight reports, and makes them available to the public.
Information Technology Division
The Information Technology Division is responsible for developing policies and guidelines to define the Bank of Mongolia's information technology strategy, introduce advanced technologies, ensure reliable operations, and reduce information technology risks within the banking system.
Key functions:
- To define the long-term direction of information technology in the banking system and to develop relevant recommendations, standards, and requirements.
- To determine and implement the information technology policy and strategic direction of the Bank of Mongolia.
- To plan and execute system upgrades and improvements, and manage the phased development, testing, and deployment of internally developed software solutions.
- To research and introduce new technologies, and organize technology related training programs.
- To be responsible for the reliability of network operations, as well as the integrity, storage, protection, and confidentiality of information used within the Bank of Mongolia.
- To manage the procurement, installation, testing, maintenance, and reliable operation of computer hardware used by the Bank of Mongolia.
National Electronic Transaction Center (NETC)
The main function of the National Electronic Transaction Center (NETC) is to organize payments between participants in the payment system and ensure their reliable and continuous operation.
NETC is responsible for the following main systems and infrastructure. These include:
1. The ACH+ system for low-value transactions has the following subsystems depending on the type of transaction:
- The small-value real-time transaction transmission system (RTP) transfers transactions and purchase transactions worth less than 5 million MNT in real time.
- The batch transaction system is a system for distributing multiple transactions of the same type to accounts in a short time.
- The unified account system registers accounts nationwide, thereby reducing the risk of erroneous transactions caused by mismatched account names and numbers.
2. The card system consists of the following two systems:
The interbank card clearing system transmits all types of transactions made using payment cards.
The token service system is a large-scale digital infrastructure that ensures the reliability and security of mobile payments.
3. NETC is also responsible for the infrastructure, i.e. the fiber optic network between participants, Data Center, Digital Signature System, and Security Control System (SOC), ensuring reliable and continuous operation.