Central Bank of Kuwait launches Kuwait Automated Clearing House System as part of second-generation national payments upgrade

The Central Bank of Kuwait has launched the Kuwait Automated Clearing House (KACH) System, positioning it as a key element of the second version of the Kuwait National Payments System to improve the speed, accuracy and operational efficiency of low-value transactions between customers of local banks. KACH operates as a unified platform for quick, reliable, low-value and repetitive payments among participating banks, with the ability to transmit transactions around the clock, including on public holidays. The system generates automated final net settlements after each clearing session and sends them to Kuwait's Automated Settlement System for Inter-Participant Payments (KASSIP) for posting to participating banks’ accounts. Security and interoperability features include use of the CBK-NET closed network based on virtual private network technology, an encrypted environment for payment message exchange, compliance with ISO 20022, and support for Straight Through Processing. The central bank also flagged further components planned for later stages of the second-version rollout, including the Kuwait Dispute Management System, the Kuwait Wages Protection System and the Kuwait Electronic Bill Presentment and Payment System.