BoE has published a revised Settlement Account Policy to include non-bank PSPs in its real-time gross settlement (RTGS) system. It wants these changes to allow non-bank PSPs to compete on a more level playing field with banks as it will reduce the dependence on them for access to payment systems.
This policy change is designed to ensure that the UK’s payments infrastructure keeps pace with the changing structure of the financial system. It marks the first step in a much broader renewal programme designed to deliver a stronger, more resilient, flexible and innovative settlement system for the UK.
Before non-bank PSPs can open a settlement account, they will need to demonstrate compliance with this risk management framework. Before then a number of legislative changes also need to complete their passage through Parliament and BoE expects the first non-bank PSPs to join RTGS during 2018.