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Well-designed and well-managed payment systems help maintain financial stability by preventing and containing financial crises.
They also help to limit the cost and risks of settlements that could hinder economic activity. The degree of oversight and supervision is dependent on the risks posed by the payment system.
Why we regulate
The National Payment System Department (NPSD) has a core responsibility of promoting the overall effectiveness, integrity, safety, efficiency and stability of the national payment system (NPS) through its regulatory mandate. The integrity mandate extends to the prevention of the use of the NPS for financial crime, in particular, fraud, money laundering and financing of terrorism. In regulating the NPS, the NPSD takes into account the need for innovation, competition and financial inclusion. Consumer protection in the NPS is the responsibility of the Financial Sector Conduct Authority in terms of the Financial Sector Regulation Act 9 of 2017.
Who we regulate
The NPSD regulates the payment systems, the financial market infrastructures (FMIs), settlement systems, payment clearing house system operators, designated clearing settlement participants, system operators, third-party payment providers, e-money providers, and other participants in the NPS, including settlement participants and clearing system participants. Access to the NPS is through designation or authorisation as provided for in the National Payment System Act 78 of 1998 (NPS Act) and directives.
How we regulate
Section 10(1) (c) of the South African Reserve Bank Act 90 of 1989 enables the NPSD to regulate the NPS. The primary legislative and regulatory framework for the NPS is provided for in the NPS Act. In order for the NPSD to achieve the policy and regulatory objectives of promoting the effectiveness, integrity, safety, efficiency and stability of the NPS, the NPSD executes its regulatory responsibility through the development of policies and issuance of legally binding directives. The NPSD also periodically issues non-binding position and information papers to affirm and clarify its policy position on specific payment system issues. These documents set out approaches, procedures and policy matters that are applicable and, although not legally binding, carry moral suasion. Development of policy positions, legislative and regulatory frameworks, including directives, follows a consultative process with the payments industry and broader stakeholder community. In terms of the NPS Act, the NPSD has the power to recognise a Payment System Management Body which formulates rules for the participants in the NPS. The NPSD coordinates with other regulatory authorities and ensures that the regulatory framework aligns with applicable international, regional and domestic standards.
NPS Regulation
The legal foundation for the NPS is derived from the South African Reserve Bank Act, Section 10(1)(c)(i) and the NPS Act.
Related documents
2026
2025
2024
2023
2022
2021
2020
2018
Joint Consultation On Processing Of Electronic Funds Transfers In Accordance With Recommendation 16 Of The Financial Action Task Force (FATF)
The Financial Intelligence Centre (FIC) together with the National Payment System Department (NPSD) of the South African Reserve Bank (SARB) are calling for comment on (i) SARB FATF EFT draft Directive 1 of 2019 (Annexure B), (ii) the FIC draft Guidance Note 102 (Annexure C), as well as (iii) their joint consultation paper. Comments are invited from accountable institutions on the joint consultation document, the draft Directive 1 of 2019 and the draft Guidance Note 102. Comments must be provided no later than Tuesday, 15 October 2019, to the FIC via e-mail on Consult@fic.gov.za and also to the SARB NPSD via e-mail on npsdirectives@resbank.co.za.
Processing of Payments in South Africa - Comments due by 18 Dec 2018
Collection of Payment Instructions for Authenticated Collections
The SARB is empowered to designate a settlement system as a designated settlement system in terms of section 4A(4) of the NPS Act. Such designation may be made if is in the interest of the integrity, effectiveness, efficiency or security of the payment system.
Notice 2459 of 2004 — CLS
Designation of continuous linked settlement (CLS) system as a designated settlement system
In terms of section 12 of the NPS Act, 1998 (Act No 78 of 1998 as amended - the Act) the SARB may after consultation with the payment system management body, issue directives to any person regarding a payment system or the applications of the provisions of the NPS Act.
Related documents
The SARB hereby issues this directive in terms of section 43A(2) of the FIC Act, to provide for the conduct of accountable institutions relating to ‘wire transfers’ or electronic funds transfers as prescribed by FATF Recommendations.
Withdrawal of Joint Communication 7 of 2020
Precautionary measures by financial institutions and payments institutions to limit the spread of the coronavirus (COVID- 19)
Amendment of the effective date for Directive 01 of 2020 (Gazette date 11 September 2020)
The directive for conduct within the national payment system in respect of domestic card transactions.
Second Amendment of Directive 1 of 2017 - effective 21 April 2020
Second Amendment of the Directive for conduct within the National Payment System in Respect of the Collection of Payment Instructions for Authenticated Collections
Directive 02 of 2020 COVID-19 Directive for NPS
Matters related to precautionary measures to limit the spread of Coronavirus
Directive 01 of 2020
In respect of domestic card transactions
First Amendment of Directive 01 of 2017 - as at 14 December 2018
Amendment of the Directive for conduct within the National Payment System in Respect of the Collection of Payment Instructions for Authenticated Collections
Interpretation note for Directive 1 of 2015
Interpretation note for Directive 1 of 2015
Directive 01 of 2015
In respect of the Financial Action Task Force recommendations for electronic funds transfers
Directive 02 of 2007
In respect of system operators
Directive 01 of 2007
In respect of payments to third persons
Directive 02 of 2006
In respect of banks involved in the collection of payment instructions in the early debit order (EDO) payment clearing houses (PCHs)
Related press release
SARB directive for the conduct of non-bank stakeholders in the NPS takes effect on 6 December 2007
The SARB publishes position papers in order to state its position on specific payment system issues. These documents normally contain approaches, procedures and policy matters, which apply at a particular time.
Related documents
Position paper 01 of 2024
Position paper on CMA cross border low value EFT payments
Position paper 02 of 2022
Position paper on Interchange in South Africa
Position paper 01 of 2022
Position paper on Faster Payments
Position paper 01 of 2018
Position paper on the Principles for Financial Market Infrastructures published by the Committee on Payments and Market Infrastructures and the Technical Committee of the International Organization of Securities Commissions
Position paper 02 of 2014
Position paper on Virtual Currencies
Position paper 01 of 2014
Position paper on the Interbank Settlement Application Interfaces
Position paper 02 of 2013
Position paper on Common Monetary Area (CMA) Cross-border Payments
Position paper 01 of 2013
Position Paper confirming the SARB’s support for the Principles for Financial Market Infrastructures published by the Committee on Payment and Settlement Systems and the Technical Committee of the International Organisation of Securities Commissions
Position paper 02 of 2011
Position paper on Access to the National Payment System
Position paper 01 of 2011
Position paper on Interoperability
Position paper 01 of 2010 — This position paper is superseded by position paper NPS 02/2013
Position paper on CMA Cross-border Payments
Position paper 01 of 2009
Position paper on Electronic Money
Position paper 03 of 2008
Position paper on Cost-recovery Policy for the SARBLink Interbank Settlement Network
Position paper 02 of 2008 — This position paper is superseded by position paper NPS 01/2014
Position paper on Interbank Settlement Network Security Architecture
Position paper 01 of 2008 — This position paper is superseded by position paper NPS 01/2014
Position paper on Interbank Settlement Network
Position paper 01 of 2007
Position paper on Bank Models in the National Payment System
Position paper 02 of 2006
Position paper on the Intraday Monitoring & Utilisation of the Liquid Asset Requirement Holdings & the Cash Reserve Account
Position paper 01 of 2003
Position Paper on Cost-Recovery Policy for the South African Multiple Option Settlement (SAMOS) System
Position paper 01 of 2001 — This position paper is superseded by position paper NPS 02/2013
Position paper on CMA Cross-border payments (as amended)
Position paper 01 of 2000
Position paper on Risk Reduction Measures for Payment Clearing Houses in the NPS
Information papers are divided into two categories:
1. Documents that complement current position papers by the industry; and
2. Documents that were utilised as position papers by the payment industry, but lapsed in terms of the duration and/or relevance. These documents are used for, among other things, research and historical reference.
Information paper NPS06 (related to position paper 01 of 2013)
The South African Reserve Bank National Payment System Department’s commitment to the Principles for Financial Market Infrastructures in the National Payment System
Information paper NPS04
South Africa’s participation in the Continuous Linked Settlement System
Information paper NPS01
Intraday Funding and Collateral Policy in the South African Multiple Option Settlement system – July 2001
Notices
Notice on PSMB transitional arrangements: management of card payment clearing houses
Notice to all stakeholders in the national payment system on the payment system management body transitional arrangements relating to the management of card payment clearing houses
Notice on PSMB transitional arrangements: authorisations and registrations of PCH SOs, SOs and TPPPs
Notice to all stakeholders in the NPS on the PSMB transitional arrangements relating to the authorisations and registrations of PCH SOs, SOs and TPPPs
Joint Communication: Crypto assets for domestic payment purposes
Notice to all stakeholders in the national payment system to clarify crypto assets
Consumer alert on instant EFT online payments
Notice to all stakeholders in the national payment system on instant EFT online payments
Notice on the exiting of cheques
Notice to all stakeholders in the national payment system on the exiting of cheques
Notice on the cheque item limit reduction to R50 000
Notice to all stakeholders in the NPS on the reduction of the cheque item limit from R500 000 to R50 000
Sort at source notice
Notice to all stakeholders in the NPS on sort at source
Notice on payroll deductions
Notice to stakeholders in the NPS, financial institutions and other non-bank institutions on payroll deductions in South Africa.
