This was published in April 2025 and consolidates the previous access policies for RTGS settlement accounts, settlement services, and omnibus accounts.
Introduction
Our provision of payment and settlement services through the Real-Time Gross Settlement (RTGS) service, contributes to the Bank’s mission to promote the good of the people of the UK, by maintaining monetary and financial stability. In our capacity as the operator of the RTGS and CHAPS services, we also seek to promote efficiency, innovation and competition in sterling payments, wherever that can be safely done without impairing stability.
RTGS is the infrastructure that underpins the settlement of sterling payments. It holds accounts for banks, building societies and other institutions. These accounts are used for broadly two purposes: to hold reserves, and to settle, or support settlement of, payment obligations.
A payment system requires a settlement service provider to provide final settlement of the financial obligations that arise between its settlement participants. Where our RTGS service is used, this takes place across settlement accounts held by those settlement participants in RTGS.
This publication sets out our access policies for the use and provision of accounts for settlement, as well as access to intraday liquidity, prefunding, and settlement services to payment system operators. Our RTGS Rules set out the eligibility criteria for different types of accounts in RTGS and the provision of settlement services.
Access to RTGS for the purposes of holding reserves is governed under the Sterling Monetary Framework (SMF) Sterling Monetary Framework Terms and Conditions, SMF Operating Procedures and Bank of England Market Operations Guide: Our tools; and is not considered further in this policy document. In many cases, however, the same account is used to hold reserves and support payment system settlement.
Box A: benefits of settlement in central bank money
Central bank money is the ultimate secure and liquid sterling asset. We are financially supported by the Government, this removes the risk of account holders losing money held in, or moved between, accounts held with us.
Disruption to payment systems can be sources of financial shock such as liquidity dislocation and credit losses, or a major channel through which shocks are transmitted. Settlement in central bank money therefore reduces financial risks between settlement participants as well as risks arising from the use of commercial bank money for settlement.
By providing a range of RTGS services, we hope to encourage the development of new, risk-reducing technologies and therefore support our objective to promote financial stability in the longer term. Supporting payments innovation is at the heart of advancing our objectives, where it can be done so safely.
Monetary stability is also enhanced by the use of our balance sheet to settle obligations in certain payment systems. This is because the ability to make large value payments promptly and with certainty, underpins the operation of the interbank money market. This is important to the monetary transmission mechanism as interbank rates (the rate of interest that banks charge when they borrow funds from each other) are a key target of the Bank’s monetary policy implementation.
The Bank acting as a settlement service provider also supports the singleness of money as central bank money acts as the anchor supporting exchangeability at par, and supports trust in money and economic transactions underpinned by it.
Settlement accounts and other settlement services
To support payment settlement, we provide two types of services:
- acting as a settlement service provider for a payment system so that participants’ obligations are settled in central bank money; and
- providing accounts to settlement participants to support their participation in any payment system that settles in RTGS.
We also provide intraday liquidity to settlement participants in CHAPS and CREST, as well as prefunding accounts to participants in payment systems that settle on a net basis in RTGS and use prefunding.
System settlement services
We support a variety of settlement models that enable payment systems to settle in central bank money.
Table A: Settlement models in RTGS
|
Settlement model |
Description |
|
Real-time gross settlement |
This model is currently only used for CHAPS. CHAPS payments are settled individually on a gross basis throughout the day. Settlement risk is eliminated, at the cost of an increased need for liquidity, making this model best suited to high value payment systems with the largest potential systemic risk. |
|
Delivery versus Payments (DvP) |
DvP ensures that securities are only transferred if the corresponding payment is also made. This model is currently only used by CREST. Funds are earmarked for CREST DvP settlement in RTGS at the start of each CREST settlement cycle, and debits and credits are applied to accounts in RTGS at the end of each cycle. Settlement risk is eliminated as transactions are settled with finality in CREST with the earmarking ensuring that sufficient funds are in RTGS. |
|
Net settlement |
Some payment systems settle obligations in batches on a multilateral net basis. This is common for retail payment systems in the UK. In the periods between settlement cycles, however, settlement risk can arise between settlement participants. |
|
Net settlement supported by prefunding |
While settlement takes place on the same multilateral net basis as above, the prefunding facility eliminates settlement risk. The payment system operator caps the net obligations of its’ settlement participants, and each settlement participant holds funds equal to the cap in a prefunding account held in RTGS. This prefunding can be used to complete settlement equal to that cap, even in the event of default of a settlement participant. |
We also provide omnibus accounts to recognised payment system operators, to pool participant funds. This allows the payment system operator to fully fund wholesale settlement with central bank money on their platform using a settlement model of their choice, while mitigating credit and settlement risk. CHAPS payments are used to move money in and out of the omnibus account, but individual transfers take place on the ledger operated by the payment system operator. Funds can be moved on this separate ledger both during and outside of the RTGS operating hours, subject to the service provided by the payment system operator.
Account services to support settlement
Institutions seeking direct settlement access to a payment system that settles in RTGS, must have an account at the Bank. The criteria for holding an account differ depending on the type of institution seeking an account and the services required. An institution with direct access has the capacity to settle payments on its own behalf, as well as on behalf of its customers where applicable, including indirect participants.
In contrast, indirect access to a payment system involves an organisation (the indirect participant) having a relationship with a direct participant, who acts as a sponsor and makes payments on the indirect participant’s behalf.
Indirect access does not require an RTGS account and may be preferred by smaller institutions, with a low volume of sterling payments and for whom the costs of direct access are not viable.
Some payment system operators also support a model where a participant has direct technical access but is indirect for settlement.
Table B: Types of RTGS accounts
|
Type |
Purpose |
Eligibility |
Remuneration |
|
Reserves-only account |
To hold funds overnight as part of the Sterling Monetary Framework |
|
Bank Rate |
|
Reserves account also used for settlement |
To hold funds overnight as part of the Sterling Monetary Framework and to settle payment system obligations |
|
Bank Rate |
|
Settlement-only account |
To settle payment system obligations. |
|
Unremunerated |
|
Omnibus account |
To pool participant funds to back settlement on payment system operator’s ledger. |
|
Bank Rate |
|
Prefunding account |
To hold funds to ensure settlement completes even in the event of participant default. |
|
Bank Rate |
Full details of eligibility criteria are set out in the RTGS Rules and, for reserves accounts, under the Sterling Monetary Framework.
Settlement accounts
Settlement accounts are used to settle an account holder’s settlement obligations in a payment system that settles in RTGS. The same account may be used to settle the obligations from more than one payment system; doing so may be more efficient for liquidity management. The eligibility criteria for accounts to be used for settlement is set out in the RTGS Rules.
- We provide settlement services for the CHAPS payment system, the payment system embedded within CREST, and several retail payment systems that settle on a net basis.
- Each payment system operator determines the access criteria to participate in the payment system(s) it operates. This includes the Bank as the payment system operator for CHAPS.
It is normally a requirement for direct participants of systems that settle in RTGS to hold an account in RTGS. This is the only option for CHAPS and CREST. For systems that settle on a net basis, however, it may be possible for a non-settling participant to have some level of access to the payment system without access to RTGS.
Use of reserves accounts for settlement
Reserves accounts held by Sterling Monetary Framework participants may also be used for payment system settlement, subject to our agreement. Settlement in central bank rather than commercial bank money can reduce financial and operational risks.
Multiple settlement accounts
We limit the number of settlement accounts granted to a group or individual entity (and similar constraints apply for reserves accounts).
There are certain circumstances where it may be appropriate to for a group or legal entity to hold more than one settlement account. Such a decision to grant additional settlement accounts is taken solely at our discretion. Generally, without prejudice to the Bank’s policy on access to reserves accounts, we will be willing to grant a further settlement account(s) where, in our view, there is a clear legal, technical or regulatory motivation for doing so.
Examples of this might include, where:
- a banking group contains ring-fenced and non-ring-fenced entities; or
- a group or legal entity is subject to client funds requirements; or
- a group or legal entity operates two segregated business lines on independent technology platforms. This may include on a transitional basis following a deposit book transfer under Part VII of FSMA.
We would also consider whether the provision of an additional account would be inconsistent with or undermine the approach agreed with PRA supervisors for liquidity management of the group or legal entity, if applicable. For example, whether legal entities are in the same domestic liquidity sub-group.
Where an account is designated as ‘client funds’, we may also require the account holder to open an ‘own funds’ account for the payment of fees and, where applicable, interest.
Settlement accounts for payment system operators
Payment system operators may apply for a settlement account in RTGS, including an omnibus account. This is typically used where that operator wants to settle in its own payment system on behalf of participants who don’t settle in central bank money, or where it wants to participate in another payment system to fund and defund balances.
If a payments system operator is subject to supervision in other jurisdictions, then we may also require assurance of oversight and co-operation with authorities in those jurisdictions. The applicant should demonstrate a track record of successful operation. For applicants that are in the early stages of their operation, we may introduce temporary restrictions (for example balance limits), to allow the account holder to demonstrate their safe and robust operation of the system. For further information see Box D: live proving and mobilisation.
Omnibus accounts
This section is for payment system operators who currently have or may be interested in applying for an omnibus account. Typically, this will be most applicable to payment system operators with a business model that would benefit from co-mingling funds from different entities in a single account to back settlement in the payment system operator’s own ledger.
In RTGS, an omnibus account is a specific type of settlement account available to recognised payment system operators to pool participant funds. This allows the operator to fully fund wholesale settlement on their platform with central bank money. The relevant payment systems can, therefore, continue to operate outside of our RTGS operating hours, as long as sufficient liquidity has been placed in the account before CHAPS closes. Balances held on the omnibus account overnight will be remunerated at Bank rate. To effectively support funding and defunding, the payment system operator must also be a CHAPS Direct Participant. The eligibility criteria for omnibus accounts is set out in the RTGS Rules.
The only institutions that can hold an entitlement in the omnibus account are Sterling Monetary Framework participants that hold reserves accounts in RTGS and are not subject to a target level of reserves. The payment system operator is not permitted to hold own funds in the omnibus account and so we may also require the omnibus account holder to open an ‘own funds’ account for the payment of fees and interest. Institutions that are eligible to join the Sterling Monetary Framework, will need to join it to become eligible to directly participate in the relevant payment system.
Further information about the operation of omnibus accounts is set out in Box B: omnibus accounts.
Accounts for Non-Bank Payment Service Providers (NBPSPs)
Authorised electronic money institutions and authorised payment institutions can only hold settlement accounts in RTGS (and prefunding accounts if relevant). As these institutions are ineligible for participation in the Sterling Monetary Framework, they are not eligible to hold a reserves account.
NBPSPs can choose to settle payment system obligations using ‘client funds’ or ‘own funds’. Some NBPSPs may choose to offer both but importantly the funds cannot be comingled, in line with the legislative framework. All NBPSPs will be given an own funds settlement account, as we pay interest and charge fees to this account only.
Such accounts are provided solely for the purpose for the NBPSP to meet its payment obligations and subject to associated maximum holding balances (see below). As NBPSPs are required to manage client funds in a manner consistent with relevant safeguarding regulations they will continue to require a commercial bank relationship to support any of its services subject to client funds safeguarding requirements, as well as its own corporate financial management.
Further information on NBPSP access to RTGS is set out in a joint Bank-FCA publication.
Settlement using client funds for NBPSPs
NBPSPs are required to safeguard client funds (‘relevant funds’) in accordance with the Payment Services Regulations 2017. Legislation allows for this to be done in several ways, including by placing the funds in an account with an authorised credit institution or the Bank of England. Relevant funds safeguarded in this way must be segregated from any ‘own funds’ the firm possesses.
The arrangements for NBPSPs settling using client funds in RTGS allow safeguarding requirements to be met. Responsibility for ensuring that ‘client funds’ (i.e. ‘relevant funds’) are adequately safeguarded, and all relevant regulations are complied with, remains with the NBPSP.
Settlement-only accounts – remuneration and maximum balances
Remuneration
Where a settlement account is not also a reserves account, balances are typically unremunerated. Prefunding accounts, however, are remunerated at Bank rate including for NBPSPs.
Maximum balances
Institutions who are not eligible for reserves accounts are provided with an account(s) solely for the purpose of meeting payment obligations. These are typically settlement-only accounts and prefunding accounts held by payment system operators (except omnibus accounts) and NBPSPs, as well as settlement-only accounts held by banks and building societies in addition to their reserves account under our policy on multiple accounts.
We can apply maximum balances (determined as appropriate by us for settlement purposes) on settlement-only accounts. The account holder must ensure that the overnight balance does not exceed the maximum balance.
In determining the maximum balance, we will consider relevant factors, given the potential impact on our mission of maintaining monetary and financial stability. Some examples of the factors considered may include:
- historic settlement information of the account holder;
- routine and peak liquidity requirements and projections; and
- discussions with the account holder in support of understanding their current and future requirements.
On each day that the overnight account balance on an account exceeds the maximum balance, we may apply an excess funds charge of £500. The excess funds charge will apply on each day the account holder is over the maximum balance. We will consider any representations made by the account holder, including prior notification of expected needs to breach, in considering whether to apply the charge.
If Bank Rate is negative, interest will be charged at Bank Rate on any amounts exceeding the maximum balance.
For more information see clause 5.1 (d) of the RTGS Terms & Conditions.
Prefunding accounts
Settlement of retail payment systems commonly takes place on a deferred basis relative to customer payments which leads to the build-up of financial risks.
Our RTGS service can support prefunding using central bank money. This eliminates settlement risk in the payment system between settlement participants. It does this by capping the maximum net obligations of the settlement participants in the system and prefunding being held in RTGS up to the value of that cap. This ensures fulfilment of the settlement participants’ net obligations in the event of their default.
The funds are held in segregated accounts known as ‘pre-funding accounts’.
- For SMF participants, these are ‘reserves collateralisation accounts’.
- For NBPSPs, these are ‘settlement collateralisation accounts’ if holding an NBPSP’s own funds and ‘completion funds accounts’ if holding an NBPSP’s client funds. Access to UK Payment Schemes for Non-Bank Payment Service Providers provides more information.
A prefunding account is automatically provided for settlement participants in prefunded payment systems settling in RTGS; there is no separate application process for the prefunding account. We can apply maximum balances (determined as appropriate by us with consideration of relevant factors) on prefunding accounts. Similar to the application of maximum balances to settlement-only accounts, the account holder must ensure that the overnight balance of the prefunding account does not exceed the maximum balance.
The prefunding account is not used for settlement ordinarily; this takes place across a settlement account. Funds on the prefunding account would only be used to complete settlement where funds were not available on the account ordinarily used for settlement for operational or financial reasons.
Intraday liquidity
Settlement in RTGS can only occur if the account holder has sufficient funds available for settlement.
Institutions exposed to overnight liquidity risk, like those involved in maturity transformation, might need extra liquidity to fund outgoing payments – especially for high-value, real-time payments. A lack of liquidity would delay the settlement of payments until payments from other institutions are received.
Eligibility
For payment systems that settle gross values, we grant certain types of participants (primarily those eligible for access to reserves accounts in the SMF) access to on-demand, supplementary central bank money throughout the day, known as “intraday liquidity”.
All reserves account holders that are direct settlement participants of CHAPS and CREST, must have the necessary infrastructure and legal arrangements in place with us, so that intraday liquidity can be obtained on demand. This does not impose a requirement to draw on the intraday liquidity routinely, but to have the facility to access if necessary.
CREST Settlement Banks may also access liquidity through the CREST Auto-Collateralising Repo facility.
While settlement of payment system obligations in central bank money and the provision of intraday liquidity to certain settlement participants has financial and monetary stability benefits, the Bank protects its balance sheet by retaining discretion in offering intraday liquidity and setting the terms. The Bank mitigates these risks by choosing its counterparties carefully and by covering any exposures with appropriate collateral.
On a case-by-case basis, we may provide intraday liquidity to an FMI that is ineligible for a reserves account but that holds a settlement account used for CHAPS and/or CREST settlement. Any application by an FMI that is ineligible for a reserves account is considered on its merits and is at our sole discretion.
Reserves account holders that participate only in the net settlement payment systems are not eligible for intraday liquidity. Net values tend to be lower, and the timing of each settlement and the value of net positions are typically known in advance and/or are capped.
As NBPSPs do not typically undertake maturity transformation and are ineligible for reserves accounts, NBPSPs are ineligible for intraday liquidity.
Terms of access to intraday liquidity and Operational Standing Facilities
As we can incur credit risk through the provision of intraday liquidity to settlement participants (i.e. the risk that the borrower may not repay), we protect our balance sheet by setting terms of the provision of liquidity. While we seek to ensure timely settlement, we aim equally to avoid taking undue risk onto our balance sheet. Such liquidity is therefore generally provided as an advance, against a defined set of high-quality, highly liquid collateral transferred by way of full title transfer to us.
Our provision of intraday liquidity and of overnight liquidity via Operational Standing Facilities are both means by which institutions can convert eligible collateral into central bank money. Criteria for accessing intraday liquidity are the same as for becoming an Operational Standing Facility participant for a Sterling Monetary Framework participant. The full criteria and details of these facilities are available in the Sterling Monetary Framework documentation.
Box B: omnibus accounts
Flow of funds associated with an omnibus account
- A participant in the omnibus account holder’s payment system (Participant A) makes a CHAPS payment to credit the omnibus account.
- The payment system operator credits exactly the same amount to Participant A’s balance in the payment system operator’s ledger.
- Participant A is then able to use these funds to send payments to other participants. These funds may subsequently be for payments between any participants within the omnibus-account backed payment system.
- If Participant B wants to withdraw funds, it sends a request to the payment system operator.
- The payment system operator then reduces the balance available to Participant B on its ledger and sends the same amount via CHAPS to Participant B.
For the avoidance of doubt while participants with a claim over funds in the omnibus account must participate in the Sterling Monetary Framework, they do not need to be CHAPS Direct Participants. Funding payments can be made using a CHAPS sponsor.
Requirements for recognised payment system operators holding an omnibus account
Access to omnibus accounts allows recognised payment system operators to fund wholesale settlement on their platform with central bank money. This has the potential to mitigate financial stability risk, but also creates new risks to financial stability and the Bank. As such, we place additional restrictions and requirements on omnibus account holders. The eligibility requirements for holding an omnibus account are set out in the RTGS Rules.
The sterling balances in the relevant payment system must always be fully (1 - 1) funded with monies in the omnibus account it holds in RTGS. It is the responsibility of the payment system operator to maintain, at all times, a 1 - 1 correspondence between the omnibus account balance in RTGS and the sum of all participant balances on its platform. This process must be supported by robust contingency arrangements and have clear risk management and governance arrangements.
An omnibus account holder needs to have robust legal arrangements that protect both the participants and us from legal risks and liability exposures.
- It must offer its participants a strong legal claim on the underlying funds in the omnibus account by holding the account on trust on behalf of the participants.
- The payment system operator’s legal documentation must clearly outline arrangements for the timely pay-out of funds in the event of a default of the payment system operator or their participant.
- Once operational, the payment system must also be designated under Settlement Finality Regulations.
Any omnibus account applicant needs to set out what types of settlement services they intend to offer via their platform and use cases that will support. The account will be granted for a particular set of settlement services and use cases, agreed during the application process. Any additional services would require prior approval by us as the operator of RTGS. It may also need regulatory approval or non-objection.
Applications
A brief summary of the approach taken for applications is below. To find out more about the application process and to apply for RTGS services, please contact us at rtgschapsaccess@bankofengland.co.uk.
Account applications
- Applications for reserves accounts should be made to the Sterling Monetary Framework application team at applications@bankofengland.co.uk, having first reviewed information for applicants.
- Existing RTGS participants should contact the Bank via RCEP about extending their access as well as the relevant payment system operator, where applicable.
- Payment system operators interested in an omnibus account should contact the Bank via RCEP, for existing participants, or rtgschapsaccess@bankofengland.co.uk.
- NBPSPs should refer to NBPSP guide and engage with the Bank via RCEP if an existing participant or for new participants rtgschapsaccess@bankofengland.co.uk; the relevant payment system operator and the Financial Conduct Authority.
Account holders do not need to separately apply for prefunding accounts.
Application process for payment system operators, including prefunding
Payment system operators that meet the eligibility requirements in the RTGS Rules may apply for us to act as their settlement service provider. While applicants may apply for a particular settlement model, we will discuss with the applicant the most suitable model for their payment system to mitigate the financial stability risk. We have discretion in determining which systems to provide settlement services for.
There is some overlap between the factors we consider in providing settlement services and those that are used by HM Treasury when assessing whether to recognise a payment system for supervision by the Bank (under section 185 of the Banking Act 2009). This is because, both, to different degrees, consider the systemic importance of a payment system and the impact its disruption would have on financial stability.
This does not, however, imply that the decision on whether a system is recognised as systemically important for supervision by the Bank’s FMI Directorate will directly correlate in deciding it should be provided with RTGS settlement services.
Settlement in central bank money can mitigate credit risk and support competition and innovation in the payments landscape, even for a system that is not recognised. Our expectation is, however, that if a system is recognised as systemically important enough for supervision by the Bank’s FMI Directorate, it is likely also to meet the criteria for settling at the Bank (although this remains at our discretion).
Box C: considerations for the Bank in providing RTGS settlement services
In providing RTGS services we balance the financial stability, competition and innovation benefits of granting access, against the risks that can arise from providing access, especially if shortcomings could affect the wider payments ecosystem. This is true both for potential account holders and payment system operators who meet the eligibility requirements set out in the RTGS Rules as well as in our discussion with other institutions seeking more novel access arrangements.
The considerations outlined below help us focus our efforts on providing services to those payment systems and account holders, where the risk reduction benefits to the payment system, and the wider payments landscape (and therefore the monetary and financial stability benefits), are maximised set against the costs and risks to us of providing the services.
The Bank will be guided by a number of considerations including:
- value and volume of transactions: the larger the value/volume of transactions moving into central bank money settlement, the greater the risk mitigation achieved. The value of the transactions informs our assessment of the extent of the reduction in credit risk and benefits for singleness of money. The value and the volume together inform our assessment of the extent of the disruption risk.
- the nature of the transactions: the relative importance of a payment to the economy or society, irrespective of the value of the payment. For example, disruption to the payment of salaries or risk that funds may not be exchangeable at par, would rate highly under this consideration. Individuals rely on receiving their salary to make other payments. Equally, if settlement in central bank money would help to support competition and innovation in a way which enhances financial stability, this would be considered.
- for financial market infrastructures who want us to act as settlement service provider, the number of directly settling participants eligible for an account in RTGS is relevant for two main reasons:
- If a relatively small proportion of participants are eligible for a settlement account, this limits the risk-reducing benefits of the system settling in central bank money (as those ineligible for a settlement account would not be able to settle in central bank money).
- The absolute number of directly settling participants will also be a factor when considering the financial stability benefits and gives an indication of market reach for the payment system, which we will take into consideration when deciding whether to provide settlement services given the risk the Bank incurs.
Against the above considerations, we will also assess the impact of other risk factors in providing access. These include: risks to monetary and financial stability; operational risk; reputational risk; and financial risks.
We will consider mitigations the account holder or payment system operator has in place to manage these risks which may include:
- risk management controls in place;
- suitable technology infrastructure;
- ability to demonstrate compliance with our requirements for access to RTGS, including providing participant assurance;
- compliance with legal & regulatory requirements; and
- resources in place to support the requirements of access to RTGS services.
Box D: live proving and mobilisation
Our ambition is to facilitate greater direct access to central bank money settlement. Changes in the payment landscape and the introduction of new capabilities under the renewed RTGS service contributes to innovation and could lead to more demand from a wider range of institutions wishing to settle in RTGS.
We must balance the risks and benefits of providing access to RTGS. Institutions applying for a new account or settlement service in RTGS must demonstrate they have met our RTGS requirements and that our participant assurance activity has not raised material concerns.
Discretionary stages
We recognise that demonstrating that our RTGS requirements have been met might be challenging to achieve under certain justifiable circumstances, for example, if an applicant cannot yet draw on a track record of successful operation. To mitigate this, we have discretion to offer an applicant one or more of our onboarding stages, supported by formal entry and exit stage gates.
- Live proving is generally for institutions to prove their business models and meet evidence requirements needed for participant assurance that they cannot otherwise meet without some form of access to RTGS. It may help to demonstrate that technology and processes can work in practice. Entry into live proving is for institutions that are ready to operationalise and start testing their RTGS access model/services.
- Mobilisation allows an institution to grow its business through RTGS safely whilst continuing work to meet any final participant assurance or regulatory requirements in parallel. Mobilisation is intended for institutions to demonstrate to us that they have implemented necessary controls, and these are sufficient to manage any risks we have identified.
These stages, supported by clear entry and exit gates, allow applicants access to RTGS services ahead of meeting all the requirements and participant assurance required for full access. That access, although with restrictions to mitigate risk, will allow institutions to test their services in RTGS and begin to grow their business in a controlled way. This supports innovation and competition, while maintaining equivalent protection against risks to our objectives. It ensures that new services have been rigorously tested and that sufficient controls are in place.
Operation of the stages and stage gates
These stages could be applicable to any account holders and payment system operators. Depending on the circumstances, an institution may go through none, one or both of the stages. Where they enter both, mobilisation will follow live proving. The specific requirements for each stage as well as the stage gate entry and exit processes may vary for each applicant. The variances will depend on the service being offered or the business model of the applicant.
The time spent in each stage will be determined by us. The stage gate entry and exit processes will not bypass or shortcut minimum contractual or operational requirements for access to RTGS services. Institutions are expected to engage with us and undertake a material amount of preparatory work ahead of entry and exit to these stages, managed by formal stage gates.
We are also exploring ways we can experiment with firms before they enter these stage gates. This could support the testing of envisaged RTGS access arrangements without directly connecting to the RTGS infrastructure.
Restrictions
How a participant uses its access to RTGS is likely to be restricted throughout these stages. For example, we may introduce temporary balance or transaction limits, to allow the participant to demonstrate safe and robust operation.
The number and nature of restrictions apply to the participant is at our discretion and is dependent on the level of protection needed to mitigate risk posed to us, or our objectives. Restrictions will be lifted once the relevant exit criteria have been satisfied.
Annex: Further information
- February 2024 discussion paper on access, reviewing access to RTGS accounts for settlement
- Access to UK payment systems for NBPSPs
- RTGS Rules