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Strengthening Cooperation:
A National Payments Council
Dave C MitchellSouth African Reserve Bank
World Bank Conference Cape Town, South Africa
April 2009
Strengthening Cooperation – A National Payments Council
Guideline 1 of the BIS General guidance for national payment system development* document stresses the importance and central role of the central bank in the development of the national payment system (NPS);
Guideline 8 of the General guidance document reads as follows “ Involve relevant stakeholders: encourage the development of effective consultation among relevant stakeholders in the national payment system”
* Bank for International Settlements – January 2006
Strengthening Cooperation – A National Payments Council
The interaction and cooperation between the central bank and a stakeholder grouping is extremely important in the development of any country’s NPS;
Both in South Africa and the SADC Payment System Project the formation of stakeholder groups, normally known as Payment Councils, has played a vital role in the development of the NPS;
As an example, I would like to share the South African experience with you.
Strengthening Cooperation – A National Payments Council
The Framework and Strategy document (also known as the Blue Book) published in 1995 and which spelt out the future of the NPS development in the country was a joint, collaborative, effort between the central bank and the banking industry;
The Blue Book contained the Vision and Strategies which were implemented over the period 1995 – 2004;
Strengthening Cooperation – A National Payments Council
Two of the strategies contained in the Blue Book related to the establishment of a Payment System Management Body known as The Payments Association of South Africa (PASA) and a broader discussion forum known as SANPAY;
PASA was established to manage the affairs of the members of the clearing and settlement systems (banks), the various PCH’s and the licensing of the PCH Operators (retail and securities);
Strengthening Cooperation – A National Payments Council
PASA is recognised by the central bank as the PSMB in terms of the NPS Act on the basis that:– It fairly represents the interests of its
members;– That its constitution is fair, equitable and
transparent;– That it will assist the central bank in its
role of monitoring, regulating and supervising the payment, clearing and settlement systems.
Legal foundation
South African Reserve Bank Act
National Payment System Act (including Directives and Position Papers)
Payment Association of South Africa (PASA) Constitution
Payment Clearing House (PCH) Agreements
Service Level Agreements
Strengthening Cooperation – A National Payments Council
A new “Vision 2010” was published in 2006 which promoted wider access to the NPS;
Non-banks have entered the NPS formally in terms of Directives issued under the NPS Act:– System Operators;– Third Party Service Providers;This prompted the formation of a National
Payment System Advisory body – the NPSAB.
Strengthening Cooperation – A National Payments Council
PASA membership will open up to non-bank participants and will enable a broader representation on the PMSB;
It will remain important to have a broader stakeholder forum for collaboration on NPS matters.
South African National Payments System Advisory Body
SANPAYAssociationsGovt.
PolicyConsultEngage
SARB Act (Section 10)NPS Act
PASAPASA Constitution
PCH’sPCH Agreements
PCH PG’s
Authorise
Low Value
CollectionsOperators
ConsultEngage
PSSF’s
AdvisoryBody
NT
BankingAssociation
Consult
ConsultEngage
3rd Party
Providers
