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What is GIRO Zrt?

May 18, 2024August 26th, 2024No Comments
Hungarian-forint
Mariel Rhetta
Content Strategist at Rutland FX
Published on: (Updated ) - minute read

If you’re making cross-border payments to Hungary or managing domestic transfers in Hungarian forint (HUF), you’ve likely come across Giro Zrt. and their Interbank Clearing System (ICS). In this article, we’ll explore Giro Zrt. and examine how their ICS supports financial operations within Hungary.

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What is Giro Zrt.?

Giro Zrt. is a central entity in Hungary’s financial infrastructure, playing a role in facilitating the operation of the country’s banking system. Established in 1994, Giro Zrt. is responsible for operating the Interbank Clearing System (ICS), which handles the clearing and settlement of domestic transactions in Hungarian forint (HUF).

What is the Interbank Clearing System (ICS)?

The Interbank Clearing System (ICS) is a key part of Hungary’s financial infrastructure, managed by Giro Zrt., facilitating the seamless clearing and settlement of transactions between banks. While ICS is primarily used for domestic transactions within Hungary, it can also be utilised for cross-border payments when a payment service provider such as Currencycloud has a relationship with a bank or third-party provider to complete the domestic leg of the transaction. The ICS offers three main clearing modes, each tailored to different transaction needs:

InterGIRO1 (Night Clearing): Processes transactions overnight, ensuring that all payments initiated during the day are cleared by the next morning. This is particularly useful for businesses needing to settle all end-of-day transactions promptly.

InterGIRO2 (Intraday Multiple Clearing): Handles multiple transaction clearings throughout the day, making it ideal for businesses and financial institutions requiring frequent settlements within the same business day.

GIROInstant (Instant Clearing): Launched on March 2, 2020, this mode enables payments up to HUF 10 million to be cleared within seconds, operating 24/7. It is crucial for scenarios that require immediate fund transfers, significantly enhancing the efficiency of financial operations.

If you are making HUF payments with Rutland FX, the local payment rail used is GIROInstant. To utilise this service, simply select “regular payment” on the platform instead of “priority payment.” This ensures your payments are processed swiftly through the GIROInstant system, allowing for near-instantaneous transactions while avoiding correspondent bank charges.
In summary, the Interbank Clearing System (ICS) provided by Giro Zrt. offers flexibility when making cross-border payments to Hungary. This system is offered by us as an alternative to SWIFT in situations where the recipient’s account is not on the SWIFT network or if you want to avoid correspondent bank fees by using a local payment route. The maximum transfer limit for GIROInstant, the key component of ICS, is HUF 10 million. If you need to send more than this amount, you’ll need to set avoidup multiple payments or opt for SWIFT instead.

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