1. General

What is Bahrain Open Banking Framework (Bahrain OBF)?

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PISPs offer payment initiation services to the users/customers as part of Open Banking. EFTS is a payments network/system that enables payments between two IBAN accounts in Bahrain. The execution of the payment under the PISP service will be handled/settled by executed by the ASPSP and settled through the existing EFTS system. For example, when a user/customer may initiate initiates a payment through a PISP application, to transfer funds from his/her bank account to a beneficiary and , the actual payment will be handled/settled by executed by the ASPSP and settled through the EFTS system.

What access rights do AISPs/PISPs have?

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• Read access allows the data recipient to obtain copies of customers’ financial data and use it for such activities as data aggregation (for example – AIS - account aggregations services).

• Write access allows data recipient to initiate payments on behalf of the user/customer (for example – PIS - payment initiation services).

What are the different types of exchange rates used in Bahrain OBF specifications?

Three exchange rate types are used in the technical specifications:

• Agreed rate type (also called booked rate type) which is an already negotiated rate between the customer and the ASPSP. This has been referred to as contract Identification in the detailed API technical specification. If the PISP provides “Agreed rate type” in the initiation object then ASPSPs must respond with their acceptance or rejection of the agreed rate. It is up to the ASPSPs to decide to accept or reject the agreed rate type provided by the PISP. Note: Agreed rate is more applicable to corporate customers.

• Actual rate (also called as live rate) is the live foreign exchange rate at which the transaction will take place. .  If the PISP provides Actual rate in the initiation object, banks may accept or reject it.

• Indicative rate is an estimate of a currency's current market price that is provided for the international transaction.  If the PISP provides Indicative rate in the initiation object, banks may accept or reject it.

As per the OBF standards, Post authentication “Get request object” should contain the exchange rate for the transaction which can be applied for the transaction. (Note: banks may also present a better rate to the user/customer).

Is the purpose code mandatory for international payments use cases?

Yes, as per the new norms released by the CBB document no “EDBO/E1/2021”, Purpose codes are mandatory for any type of international transaction. The object “OBInternationalPaymentInitiation” contains the provision for Purpose code. For additional information on Purpose code, please refer to https://cbben.thomsonreuters.com/rulebook/mandating-use-purpose-codes-swift-cross-border-payments4-january-2021.

Is there any time limit for settlement of international transactions?

The transaction and settlement duration for international payments will remain same as per the existing banking practice.

2. Security and Privacy

Is Bahrain Open Banking safe?

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Strong Customer Authentication or ‘SCA’ is authentication based on the use of three elements categorized as knowledge (something only the user knows [for example, a password]), possession (something only the user possesses [for example, particular cell phone and number]) and inherence (something the user is [or has, for example, a fingerprint or iris pattern]) that are independent, so the breach of one does not compromise the others, and is designed in such a way as to protect the confidentiality of the authentication data. For further information on elements of SCA or related exemptions, kindly refer to relevant Open Banking sections of the Rulebook.

3. Accreditation

Why should anyone apply for accreditation?

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• If the licensee fails to satisfy any of the license conditions;

• If the licensee violates the terms of the CBB Rulebook;

• If the licensee fails to start a business within six months from the date of the license;

• If the licensee ceases to carry out the licensed activity in the Kingdom;

• The legitimate interests of the customers or creditors of a licensee required such amendment or cancellation.

4. API Specification

What is the use of Unique Identifiers (Id Fields)?

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Flow fails to succeed due to the USER/CUSTOMER providing invalid credentials to the ASPSP, resulting in no Authorisation Code being generated.

5. Further Information

How can I stay informed on new Open Banking updates or news?

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