Central banks split on non-bank access to RTGS systems
Benefits of innovation must be weighed against risks of financial instability
In most jurisdictions, firms that want to use real-time gross settlement (RTGS) systems operated by the central bank have to have an account with the institution. RTGS systems allow the balances from these accounts to be transferred in real time; transactions are secure and irrevocable.
Central banks were split as to whether or not non-banks are provided access to their RTGS systems, according to the Payments Benchmarks 2021.
Nineteen out of 35 central banks (54%) that answered this payments
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Payments Benchmarks 2023 – executive summary
Payments are undergoing rapid technological change, creating opportunities – and challenges
Payments Benchmarks 2023 report – moving money in shifting conditions
Data reveals differences in CBDC paths, RTGS systems, instant payment plans and budgets
RTGS systems are used free of charge in one-tenth of jurisdictions
RTGS systems are used free of charge in one-tenth of jurisdictions
Median RTGS system processes nearly $100bn annually
Median value of payments rose by $15bn from the previous benchmark
Primary RTGS systems have average $1.65m in operating costs
Majority of central banks increased payments system divisions budgets in the past year
Payments oversight is under-resourced for a third of central banks
Respondents identify shortage of human capital, capacity building and dated technology as concerns
Few non-banks have access to RTGS systems
Maximum number of institutions reported to have access to one RTGS system was 233
Most central banks have payment and settlement supervision mandates
Payment system laws contain oversight powers in two-thirds of jurisdictions