July 15, 2016
Update on Zengin System Extended Operating Hours
Japanese Banks’ Payment Clearing Network
1. Zengin System Extended Operating Hours
 When financial institutions such as banks make credit transfers to other banks,
at present, payment to the recipient account in real time is typically only madeduring the period between morning and late afternoon on weekdays. As a result,from late afternoon until morning on weekdays and on Saturdays, Sundays, andholidays, even when credit transfers are made using an ATM or like, in mostcases the payment is not actually made to the recipient account until themorning of the following business day.
 There are various reasons why the period during which real-time payments are
made is restricted, such as differences in customers’ needs at each bank, but amajor reason is the operating hours of the Zengin System,1 which communicates
credit transfer information between banks, are limited to the period from 8:30
a.m. to 3:30 p.m. on weekdays.2
 Extending the operating hours of the Zengin System to make it operational 24/73
is designed to improve the convenience of credit transfers to other banks4 on
weekdays during the period between late afternoon and morning and on
Saturdays, Sundays, and holidays.
 As explained later, participation in this system will be at the discretion ofindividual banks. As a result, it will not necessarily be possible to realize
real-time payments for credit transfers between all banks from the beginning of
the extended operating hours. Furthermore, the actual hours during which
services are available and the channels that can be used (Internet banking,ATMs, etc.) may vary depending on the participating bank and accountconditions.
 In addition, credit transfers between accounts at the same bank are not covered
The system managed by the Japanese Banks’ Payment Clearing Network (Zengin-net). It handles
online domestic exchange transactions between financial institutions. For details, see
https://www.zengin-net.jp/.
2 On the last business day of the month (excluding year-end business days), the operating hours arefrom 7:30 a.m. to 4:30 p.m.
3 It is possible that there will be temporary suspensions of operation due to system maintenance andthe like.
4 The financial institutions that use the Zengin System include institutions other than banks, anddepositary financial institutions other than banks will also be able to participate in the extended
operating hours.
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by the Zengin System, so they will not be covered by this initiative either.
 At present, the target date for beginning service5 is the second half of 2018. We
are continuing to pursue evaluations and preparations relating to the newsystem.

5

The target start date for the extended operating hours of the Zengin System is the second half of2018, but the start date for providing services to customers at individual participating banks will bedecided by each bank.

2Image of Newly Extended Operating Hours (See Section 2 for Details)
Time

Weekdays

Saturdays, Sundays, andperiodholidays

0:00 to
8:30

8:30 to
15:30

15:30
to

Current operating hours

Newly extended operating(using current system)hours

・Current hours where all member banks
are required to be connected.
・ Real-time payments are possible
between all member banks.
・ Current operating hours will bemaintained by the current system.
Shared connection time・Time during newly extended operating
hours when all member banks areconnected.

(using More Time System)
・ To realize 24/7 operation, anew platform (More TimeSystem) will be built separate
from the main system.
・Envisioned mainly for credit
transfers
usingInternetbanking and ATMs.
・Real-time payments between
connected member banks arerealized.

24:00
2. Framework for Realizing Extended Operating Hours

Building a new platform (More Time System)(1)
As a method for realizing 24/7 operation of the Zengin System, in addition
to the current Zengin System with operating hours of 8:30 to 15:30 onweekdays and 7:30 to 16:30 on the final day of the month6, a new platform(the More Time System) separate from the main system will be built tocover such time periods when payments were not processed such as theevening to night period on weekdays and Saturdays, Sundays, and holidays
where considerable unmet needs exist for both individuals and companies.
As a result, the existing main system and the More Time System together
will operate on a 24/7 basis and will establish an environment wherereal-time credit transfers to other banks will become possible.

All member banks7 are required to be connected during current operating
hours. On the other hand, each member bank will be able to choose whether
or not to participate in the More Time System.

Since preparation times will differ by member bank, based on factors suchas their system development conditions and administrative preparations, itwill be possible for member banks that choose not to participate when the6
7Excluding the year-end business days.
Depositary financial institutions that are members of the national Japanese banks’ domestic
exchange system (a system primarily for payment clearing between banks, etc., using the Zenginsystem).

3More Time System first starts operation to begin participating once theyare ready.
 Furthermore, each bank that opts to participate in the More Time System(“participating banks”) will be able to choose the specific time period during
the extending operating hours when it will be connected, based on its
customer needs and so forth. As a result, depending on the time period, there
may be cases where credit transfers via the More Time System cannot bemade, even if the bank is participating in the system.
 However, all participating banks shall be connected during the period from3:30 p.m. to 6 p.m. on weekdays, when there is high demand among bothindividuals and companies.
 The condition for completing real-time payments during newly extended

operating hours is banks making credit transfers (sending banks) and banksreceiving credit transfers (receiving banks) both being connected to the MoreTime System at the same time.

4Diagram of Current System and More Time System
Case 1
Example in which Bank A, Bank B, and Bank D are participants in the MoreTime System (while Bank C is not) and Bank A, Bank B, and Bank D are allconnected to the More Time System at the same time・ In this case, real-time payment is possible when a credit transfer is madefrom any of Bank A, Bank B, or Bank D to any of Bank A, Bank B, or Bank
D. However, as indicated above, credit transfers between accounts at thesame bank (e.g., a credit transfer from an account at Bank A to anotheraccount at Bank A) are not covered by this system, and whether or not
real-time payment is possible depends on the individual bank.
・ In cases other than the above (e.g., a credit transfer from or to Bank C),

payment will typically be made on the following business day 8 , as iscurrently the case.
Bank C customer

Bank A customer

Bank ABank C

More Time System

Current System(participation optional)(participation required)Bank B

Bank D

Bank D customer

Bank B customer

・Solid lines (・Dotted lines (8) indicate network lines that are in communication.
) indicate network lines that are not in communication.

Specifically, payment will be made via the current system, in conjunction with the More TimeSystem, at the time on the following business day when banks connect to the current system(normally 8:30 a.m.; 7:30 a.m. on the last business day of the month, excluding year-end businessdays).

5Case 2
Example in which Bank A, Bank B, and Bank D are participants in theMore Time System (while Bank C is not), but only Bank A and Bank B are
currently connected (Bank D is not connected due to system maintenanceor the like)・ In this case, real-time payment is possible when a credit transfer is madefrom 1) Bank A to Bank B, or 2) Bank B to Bank A.
・ In the case of 3) credit transfer from Bank A or Bank B to Bank D, thepayment will be made when Bank D reconnects to the More Time System oron the following business day.9
・ In the case of 4) credit transfer from Bank D to Bank A or Bank B, thepayment will typically be made when Bank D reconnects to the More Time
System or on the following business day.10
・ In cases other than the above (e.g., a credit transfer from or to Bank C),

payment will typically be made on the following business day 11 , as iscurrently the case.
Bank C customer

Bank A customer

Bank ABank C

More Time System

Current System(participation optional)(participation required)Bank BBank D

Bank B customer

・Solid lines (・Dotted lines (Bank D customer) indicate network lines that are in communication.
) indicate network lines that are not in communication.

9 See note 8.
10 See note 8.
11 See note 8.

6

(2)

Operations Covered by More Time System When Introduced
 The More Time System shall be limited to the minimum required functions when
it starts operation.
 Specifically, the operations covered by the More Time System when it isintroduced shall be telegraphic fund transfers 12 involving credit payment
amounts of less than 100 million yen.13 Credit transfers involving a deposit datespecified in advance (post-dated credit transfers) or credit transfers involving
requests to make multiple transfers at once (bulk transfers or salary/bonustransfers) shall not be covered by the More Time System when it is introduced.

3. Intention of Banks to Participate in the More Time System
 As of the end of May 2016, approximately 80% (112 banks) of all member banks 14
wished to participate in the More Time System from the beginning (connection
hours are to be surveyed later15). In order to improve convenience for customers,
we will continue our efforts to further increase participation among memberbanks, based on the benefits of the system.16

The actual amount that customers can transact will vary depending on the maximum handlingamount for the channel at the individual bank.
13 A communication method for sending and receiving a credit transfer (exchange notification) online
via the Zengin System in real time.
14 Out of all clearing participants (144 banks) and financial institutions that outsource clearance using
a separate connection method (1 bank) (total of 145 banks as of the end of May 2016). This counttherefore does not include credit unions, credit associations, labor credit associations, agricultural
cooperative credit federations, fishing cooperative credit federations, agricultural cooperatives, andfishing cooperatives.
15 From 3:30 p.m. to 6 p.m. on weekdays, all participating banks shall be connected, and with regard toconnection during other time periods, we plan to conduct a survey of banks who wish to participate
in future.
16 Including those banks who wish to begin participating after the system begins operation, at the timeof the survey (end of May 2016), over 90% of the 145 banks intended to participate in the More TimeSystem.
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