The transfer of funds using CIFS is subject to the strict condition that the bank sending the transfer order holds adequate balances in its reserve account with the CBC. In the event of insufficient coverage, the transfer order is automatically held pending until covering funds have accumulated in the account through incoming payments and the pending payment can be settled automatically. The settlement of payments is determined by an order of priority which the sending bank can assign to a payment order. Within this order of priority, the FIFO («first in, first out») rule applies. Pending payments may be cancelled at any time while they are in the queue.

(2) Daylight overdraft facility.

(a) Eligible collaterals includes government bonds, treasury bills, NCDs or CDs issued by CBC.

(b) Before March 2003, no overdraft fees.

(c) After March 2003, rate charged for overdrafts as follows:
Ÿ-Interest on intraday overdrafts pledged by Classes 1 and 2 collateral is payable at a rate of the Bank's rate on accommodation with collateral in effect on that day.
Ÿ-Interest on intraday overdrafts pledged by Class 3 collateral is payable at a rate of 1.5 times of the Bank's rate on accommodation with collateral in effect on that day.

(3) Set Throughput Guidelines - to smooth overall system flows

(a) For banks

At least 50% of value out by 2:30 p.m.

At least 80% of value out by 4:30 p.m.

(b) For bills finance companies

At least 30% of value out by 2:30 p.m.

At least 80% of value out by 4:30 p.m.