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National Payment System Act, 1998 (Act No. 78 of 1998)

4. Objects and rules of payment system management body

 

 

1) The objects of the payment system management body are to organise, manage and regulate, in relation to its members, all matters affecting payment instructions and, in connection with those objects-
a) to provide a forum for the consideration of matters of policy and mutual interest concerning its members;
b) to act as a medium for communication by its members with the South African Government, the Reserve Bank, the Registrar of Banks, the Co-operative Bank Supervisor, the Registrar of Financial Institutions, any financial or other exchange, other public bodies, authorities and officials, the news media, the general public and other private associations and institutions; and

[Paragraph (b) amended by section 257 of Act No. 45 of 2013]

c) to deal with and promote any other matter of interest to its members and to foster co-operation between them.

 

2) In addition to any other provisions thereof, the rules of the payment system management body must empower that body-
a) to admit members and to regulate, control and, with the approval of the Reserve Bank, terminate membership;
b) to constitute, establish or dissolve any body, committee or forum consisting of its members and which has an impact on, interacts with, has access to or makes use of payment, clearing or settlement systems or operations;
c) to-
i) recommend for approval by the Reserve Bank, criteria subject to which any person is granted membership of the payment system management body or is to be authorised to act as a system operator or a PCH system operator within a payment system; and
ii) authorise that person to act as a system operator or PCH system operator in accordance with those criteria; and
d) to recommend for approval by the Reserve Bank criteria subject to and in accordance with which a member that is also a Reserve Bank settlement system participant may be authorised to-
i) allow a bank, a mutual bank, a co-operative bank, a designated clearing system participant or branch of a foreign institution that is not a Reserve Bank settlement system participant to clear; or
ii) clear on behalf of a bank, a mutual bank, a co-operative bank, a designated clearing system participant or a branch of a foreign institution that is not a Reserve Bank settlement system participant:

Provided that the member shall settle payment obligations on behalf of such bank, mutual bank, co-operative bank, designated clearing system participant or branch of a foreign institution referred to in subparagraphs (i) and (ii).