Central Bank of Kuwait rolls out new national payments system
. . . major leap in digital banking infrastructure; 24/7 payments, faster settlements
The Central Bank of Kuwait (CBK) has officially launched the second version of the Kuwait Automated Clearing House (KACH) System, marking a decisive step in modernizing the country’s financial infrastructure and strengthening Kuwait’s position as a regional hub for financial services.
In a press statement, the CBK described KACH System, as a strategic milestone in the development of national payment systems.
The new platform is designed to raise operational efficiency, accelerate transaction processing, and enhance accuracy in handling low-value financial transactions between customers of local banks.
KACH provides a single, unified platform for processing financial transactions between participating banks with speed and reliability.
It specializes in executing low-value and recurring transactions automatically and instantly, enabling customers to send and receive payments around the clock, including during official holidays, through a simplified and secure mechanism.
The system also automatically transmits final net settlement data for participating banks to the Kuwait Automated Payment Settlement System at the end of each clearing session, ensuring seamless integration across the national payments ecosystem.
The Central Bank highlighted that KACH operates on the secure closed network “CBK-NET”, which is based on VPN technology and serves as the approved communication channel between participating banks and the system.
This provides a highly secure and encrypted environment for the exchange of payment messages, alongside fast settlement speeds and reduced transaction costs.
The system is fully compliant with the global ISO 20022 standard for financial messaging and supports direct automated execution technology, enabling the immediate and automatic transfer of financial data between banks.
The CBK noted that the launch of KACH represents a key integration milestone within Kuwait’s national payments infrastructure. It complements existing systems and aligns with upcoming platforms scheduled for launch in the next phases of the project, including — Financial Claims Management System, Wage Protection and Payment System and National Bill Payment System.
Together, these systems form the backbone of the second version of the Kuwait National Payments System, aimed at building a fully integrated, efficient and future-ready digital payments environment.
The Central Bank stressed that the new system will enhance the competitiveness of financial services in the banking sector, improve electronic payment services, and contribute directly to supporting the national economy.
It added that the initiative reflects its ongoing commitment to strengthening stability in the banking sector, raising operational efficiency, and delivering tangible benefits to individuals, businesses, government entities and banks operating in Kuwait.
With the launch of KACH, Kuwait takes a significant step forward in its digital transformation journey, reinforcing its ambition to become a leading financial services center in the region.
