Firms have until 29 June to submit proposals for a real-time gross settlement system for interbank payments, and an automated clearing house system for processing payment instructions. The successful contractor is also required to provide training to CBI staff.

Washington sees the introduction of an effective payment system as central to stimulating economic activity in the country. The existing payments clearing and settlement system is manual and paper-based.

The systems have to be installed within seven months of the contract being awarded and will be used in about 35 locations. These include two CBI sites - a primary processing centre and a back-up processing office - and about 25 other banks, some of which will use the system from multiple locations.

Nine private banks have obtained CBI approval to carry out international payments, remittances and letters of credit, which are estimated at about $1,500 million a year. Informal arrangements with regional banks are being replaced with regular correspondent banking relationships.