BoE Consults on Adoption of Global Standard for Payments in UK
BoE, in conjunction with the New Payments System Operator (NPSO) and the Payment System Regulator (PSR), launched a consultation on the adoption of a common global language or messaging standard, known as ISO 20022, for payments in the UK. The standard will be adopted across the three main interbank payment systems in the UK. The three payment systems are CHAPS, Faster Payments, and Bacs, which together process over 8 billion payments annually. Responses msut be submitted by July 18, 2018.
BoE has worked closely with the NPSO to design the Common UK Credit Message (CCM)—a standard message to be used across all three payment systems. Additionally, the message has been designed to be compatible with the overseas payment systems that are adopting the ISO 20022 global standard. This change is being enabled by the planned delivery of two major UK payment infrastructures, a renewed Real Time Gross Settlement (RTGS) for CHAPS payments and the New Payments Architecture (NPA) for Bacs and Faster Payments.
The consultation also covers the details of how this message will be implemented within CHAPS, including what additional data will become mandatory. BoE is not expecting to migrate CHAPS payments to ISO 20022 until 2021. Victoria Cleland, the new Executive Director for Banking, Payments and Financial Resilience will be leading this change as part of the wider RTGS Renewal program. Implementing ISO 20022 will enrich the data carried in payments messages, improve compatibility across technology platforms, and create opportunities for collaboration and innovation. Realizing these benefits to the full and preparing the payment systems for the future will require material changes, for both payment providers and users of the system.
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Comment Due Date: July 18, 2018
Keywords: Europe, UK, Banking, PMI, Messaging Standard, Interbank Payments System, RTGS, NPA, BoE
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