RSA CB Electronic Funds Transfer

Published on: Nov 20, 2024

On Nov. 15, RSA GVT issued directive on credit payment instructions.

  • RSA GVT issued RSA CB directive on issuing of electronic funds transfer credit payment instructions on behalf of the payer in the National Payment System (NPS).
  • Purpose
  • Impose requirements on persons issuing electronic funds transfer credit payment. instructions on behalf of the payer, using screen scraping, or any other tool in the NPS.
  • To mitigate risks identified in para 2.5 including lack of data privacy, exposure to fraud.
  • Screen scraping is largely conducted without informed consent of the payer.
  • Registration Requirements
  • No person may issue electronic funds transfer credit payment instructions on behalf of a payer in the NPS unless that person: is registered with RSA CB;
  • And has obtained informed consent of the payer prior to issuing such a payment instruction/initiating such a payment; or exempted from registration by RSA CB.
  • RSA CB reserves the right to decline application for registration if requirements in this directive are not met; reasons for declining application will be disclosed to applicant.
  • Provisions
  • Directive includes provisions related to marketing; consumer awareness; informed consumer consent; operational risk; payer data protection and dispute resolution.
  • Enforcement
  • Contravention of this directive is an offence in terms of section 12(8), NPS Act.
  • RSA CB may terminate the registration of a person registered in terms of this directive where such person fails to comply, or if it is in interest of safety and efficiency of NPS.
  • Any person whose registration has been terminated shall immediately cease to issue electronic funds transfer credit payment instructions on behalf of any payer.
  • Effectiveness
  • Directive is effective 90 days after publication, i.e. on Feb. 13, 2025.
Regulators
RSA CB; RSA GVT
Entity Types
Bank; CNSM; MSB
Reference
OG 51556, Ntc 5550, Dir 2/2024, 11/15/2024
Functions
Advertising; Complaints; Compliance; Fraud; Operations; Privacy; Product Administration; Record Retention; Registration/Licensing; Risk; Sales Practices; Settlement; Technology
Countries
South Africa
Category
State
N/A
Products
Banking; Payments
Rule Type
Final
Regions
EMEA
Rule Date
Nov 15, 2024
Effective Date
Feb 13, 2025
Rule ID
233764
Linked to
N/A
Reg. Last Update
Nov 15, 2024
Report Section
International