Following the Resolution of the Board of the Bank of Lithuania of 12 February 2004 No. 11, the payment system KUBAS was registered at the Bank of Lithuania. The operator of the system is the Central Credit Union of Lithuania (Central Union)

The payment system KUBAS is designed to make payments between credit unions or credit union customers (internal payments) and payments between credit unions and credit institutions or credit institution customers (external payments). The Central Union may also make payments in the system. Internal payments in the payment system Kubas are made through the accounts of system participants with the Central Union. External payments are made through the account of the Central Union with the Bank of Lithuania.

Participation in the payment system KUBAS is open to the Central Union and credit unions that are members of the Central Union. A comprehensive list of system participants is provided in the Official List of Systems.

The System operates each business day of the Central Union from 8:00 a.m. to 5:00 p.m. Payment instruction information is exchanged electronically between credit unions and the Central Union.

Payment instructions submitted to the System are entered into the payment queue by payment priority (urgent or ordinary) and the time of submission. Internal payment instructions are settled at a designated time by debiting the account of the paying credit union and crediting the account of the beneficiary credit union. External payment instructions are settled at a designated time. If the funds are sufficient in the account of the paying credit union, the Central Union submits the payment to payment systems LITAS-RLS or LITAS-MMS. If the payment instruction has been processed in those payment systems, the balance in the account of the paying credit union is reduced by the amount of funds indicated in the payment instruction and the payment instruction is treated as settled. A credit union may check its account balance with the Central Union electronically at any time.

Credit, liquidity and operational risk management measures are applied in the payment system KUBAS. In case of a hardware or software failure the backup system starts its operation.

The payment system KUBAS service fees are set following the system development and operation cost coverage principle. Service fees are approved by the Board of the Central Union.