ABSTRACT
Introduction A payments system, consisting of a set of rules, instructions and technical mechanisms for the transfer of money, is an integral part of the monetary system. As such, the safe and efficient operation of the payments system is of concern to both market participants and public officials, especially central bankers. Efficient domestic and cross-border payment systems are particularly essential for the smooth functioning of a single monetary zone so that citizens of the member countries can benefit fully from the principles of the free movement of goods, services, capital and people that will come with the introduction of the second monetary zone, and so that they can transfer money effectively and efficiently within the domestic system and from one part of the zone to another. Experience indicates that the existence of a payments system that is responsive to the needs of individuals and businesses, for safe and efficient funds transfers, is an important part of the infrastructure needed to introduce a monetary union successfully. Of all the payment systems components, large-value transfer systems (Real-Time Gross Settlement – RTGS systems) are the main arteries of a nation’s payment system, providing the ultimate settlement vehicle for important cross-border markets in multiple currencies, and are key infrastructural requirements for implementing a single monetary policy.
