On Mar. 28, RSA CB consulted on payment system climate risks.
RSA CB issued National Payment System Department consultation paper: Climate Change Policy and Regulatory Framework in the National Payment System.
Purpose
Propose a policy, regulatory framework for managing climate-related risks for payment institutions and payment system financial market infrastructures (FMIs) in the national payment system (NPS), and gather feedback from the industry and stakeholders.
Climate Risk
Climate change poses systemic risk to payment institutions, payment system FMIs, the national payment system and to the broader financial system; disruptions from natural consequences of climate change can affect payment systems operations, continuity.
Extreme weather events may impact operations and availability of payment systems, infrastructure, and critical payments services provided by payment system FMIs.
E.g. floods may damage infrastructural, properties and information technology, hardware, impacting the operations of payment institutions and payment system FMIs.
Such damage may hinder the ability of payment system FMIs to clear and settle payment obligations, which could potentially result in a systemic event.
Building resiliency to climate related risks and shocks is vital for payment institutions, payment system FMIs, the NPS and the broader financial system.
RSA CB - as regulator, supervisor and overseer of NPS - requires that payment institutions implement measures to mitigate the risk of climate change.
And to promote a greener NPS that contributes to addressing climate-related risks.
Effectiveness
Comments must be submitted using template by Apr. 30, 2025.
