Information for a New Participant

Masav System

The Bank Clearing Center Ltd. (hereinafter: the “Company”) operates a regulated national payment system for interbank transfers (a system for debits, credits, and payment transfers; hereinafter: the “System”), which is part of Israel’s payment and clearing infrastructure.

The Company provides, among other things, electronic clearing services for debits and credits transferred electronically between banks and their customers, for the purpose of debiting or crediting (as applicable) accounts held at banks.

The Company is working to expand access to the System for various entities, including non-banking institutions. The dates listed below are intended to ensure the Company’s readiness and availability so that any entity wishing to join the System will be required to meet the access conditions and criteria as published, in coordination with the Company and in accordance with full compliance with the System’s rules. Upon receiving the Company’s approval, a suitable entry date will be determined in coordination with the applicant.

The main services provided by the system are electronic clearing services and information transfer services, operating to ensure the stability of the system, its efficiency, and the reliability of the information transmitted through it.

Participants in the system include banks and non-bank financial institutions supervised by regulators and licensed by the Bank of Israel to connect to the Masav system.

Masav, operating since 1982, is a banking corporation owned by five banks. It provides services to all banks and their customers equally.

The high volume of activity in Masav and the uniqueness of its services make it a central component in the financial activity of the Israeli economy. Masav is supervised by the Payments and Clearing Division of the Bank of Israel.

Thanks to its vast experience in the field of payments, Masav provides a variety of solutions that meet the needs of participants—banks and their customers, small businesses, medium and large corporations—with daily operations amounting to billions of shekels in payment instructions transmitted through the system.

Participation in the system requires compliance with Masav’s rules to maintain system stability and efficiency.

This information is intended for entities interested in joining the Masav system as participants, and it refers to the following aspects:

  1. Information on joining the Masav system as a new participant
  2. The joining process
  3. Requirements for joining the system

The information in this document is for informational purposes only and may change due to regulatory updates and/or operational changes in the system. It is clarified that this document does not replace the official system rules. In the event of a contradiction between this document and the system rules, the rules of the system shall prevail.

Entities operating in the Masav system:

  • Participants – entities licensed and assigned a unique code by the Bank of Israel, enabling them to act as participants in the system.
  • Users (organizations) – entities that maintain an account with a participant and have received approval from that participant to perform credit and/or debit transfers directly in Masav, using an institution code assigned to them for their operations.

Types of operations that can be performed as a participant in the Masav system:

  • Credit transfers from customer accounts to accounts at other participants
  • Immediate payments
  • Payment requests

The immediate payments infrastructure operated by Masav provides advanced and efficient payment solutions, with potential to serve as an additional payment method.

  1. 1

    Joining the Masav System

    Terms and Requirements – Meaning

    Entities wishing to participate in the Masav system as participants must meet the conditions and requirements detailed below:

    1. 1.1

      Conditions for accessing the Masav system

      • A supervised entity licensed by the Bank of Israel, as determined by the Supervisor of Payment Systems
      • An entity holding a unique identification code issued by the Bank of Israel
      • Selection of an access model and clearing solution appropriate to the entity’s operational needs

      For more details about the various access models, see:

      https://www.boi.org.il/en/economic-roles/supervision-and-regulation/payment-systems-oversight/access-to-payment-systems/access-guide/

      • Signed agreement with the system operator for participation in the system
    2. 1.2

      Requirements for joining the Masav system

      • Compliance with the rules of the system – the rules apply to all participants and define the operational framework of    the system. A summary is available at: masav or in this link
      • The participant is responsible for implementing adequate physical and information security measures for any endpoint devices connected to the system, or any other place where access to system data exists
      • Liquidity management – the participant must manage liquidity and deposit collateral funds to ensure completion of settlement in the event of a liquidity failure
      • The participant must declare the existence and enforcement of internal procedures or policies for working with the system under both routine and emergency conditions
      • The participant must comply with the system’s technological requirements, including using tools that ensure user identification, authentication, confidentiality, data integrity, and non-repudiation (e.g., smart cards, biometric identification)
      • Business continuity – participants must ensure they have business continuity plans in place and verify operational readiness of their system components interfacing with Masav
      • Compliance with information security and cyber standards accepted in Israel’s banking sector, including relevant laws, regulatory guidelines, and supervisory directives

      Preparatory Steps:

      Entities interested in participating in Masav’s clearing system are invited to review the Access Guide and contact:

      payments-oversight@boi.org.il

      If participation in the check clearing system is also desired, the applicant must contact the system operator directly.

  2. 2

    The Joining Process

    1. 2.1

      Contacting the Supervision of Payment Systems

      The process begins with the applicant contacting the Supervision of Payment Systems at the Bank of Israel to receive guidance regarding the joining process and to define the type of participation requested.

    2. 2.2

      Receiving Written Approval

      Masav receives formal written approval from the Bank of Israel, including the participant’s name, license type, and chosen participation model.

    3. 2.3

      Signing of Confidentiality Annex and Delivery of Sensitive Rules

      Masav sends the annex for signature. Within 5 business days, sensitive system rules are delivered.

    4. 2.4

      Signing the Participation Request

      The applicant signs the relevant request form, based on the chosen participation model. Masav sends confirmation to the Bank of Israel.

    5. 2.5

      Approval & Institution Code Assignment

      The applicant submits a request to the Bank of Israel for assignment of an institution code.

      Upon receiving approval and code assignment, Masav begins the onboarding process.

    6. 2.6

      Kickoff Meeting

      Masav meets with the applicant to present systems, services, and technical requirements.

      The applicant updates Masav on which systems they plan to implement. Credit and debit modules are the core requirement.

    7. 2.7

      Entry Windows and Coordination

      • Participation request must be submitted at least 8 months before the entry window.
      • Entry windows are coordinated with the Bank of Israel and occur twice a year.
      • The entry dates are published on Masav’s website

      Connection to the Masav system is conditional upon successful completion of integration tests and receiving approval from the system operator.

      Entities wishing to join must meet all access criteria, in coordination with Masav, and in full compliance with the system’s rules.

      Upon approval, a suitable entry date will be set together with the applicant.

    8. 2.8

      Diagram – Full Joining Process (14 Steps)

      1. Initial contact with the Bank of Israel’s Payment Systems Supervision Division
      2. Receipt of general guidance and access consultation
      3. Definition of the requested participation model
      4. Recommendation by the regulator on participation model
      5. Written approval issued by the Bank of Israel
      6. Approval includes participant name, license type, and model
      7. Masav sends confidentiality annex for signature
      8. After signing, sensitive system rules are provided (within 5 days)
      9. Applicant signs participation request form
      10. Masav sends confirmation to the Bank of Israel
      11. Applicant submits request for institution code assignment
      12. Bank of Israel assigns code and authorizes project start
      13. Kickoff meeting is scheduled with Masav
      14. Entry window is defined and coordinated with all participants
  3. 3

    Joining Costs and Ongoing Fees

    Participants bear all costs for establishing, operating, and maintaining communication infrastructure between themselves and Masav, per technical connection specifications.

    The one-time connection fee will be calculated based on work hours and resources required for adjustments and testing.

    Fee to be paid monthly by the applicant according to Masav’s published fees:

    תעריפון שירותי מס”ב | מחירים ועלויות עדכניות

    Costs include:

    • Fixed monthly fee: ₪25,000
    • Additional hourly charges as per actual effort invested, according to Masav’s fees