On Mar. 14, RSA CB consulted on interoperability in payment system.
RSA CB issued draft consultation paper on interoperability in national payment system.
Also issued draft notice on designation by Prudential Authority (PA) of specific activities conducted in national payment system which shall be deemed not to constitute the business of a bank in terms of the Banks Act, 1990 (Act No. 94 of 1990).
And draft directive re specific payment activities within the national payment system.
Background
National Payment System Act 78 of 1998 (NPS Act) provides for management, administration, operation, regulation and supervision of payment, clearing and settlement systems in Republic of South Africa, and for connected matters.
National payment system (NPS) covers entire payment process from payer to beneficiary, includes settlement between banks and all tools, systems, mechanisms, institutions, agreements, procedures, rules or laws applied or used to effect payments.
Purpose of consultation paper is to propose revised policy position and regulatory framework on interoperability within NPS and solicit views from relevant stakeholders.
Exemptions
Certain payment services activities offered by non-banks constitute deposit-taking activities due to the pooling of consumer funds, i.e. e-money.
Definition of the business of a bank in the Banks Act No 94 of 1990 prohibits deposit-taking by non-banks: RSA CB will allow direct participation of non-banks into the NPS through exemption of specific payment activities from definition of business of a bank.
