National Payment System Act, 1998 (Act No. 78 of 1998)4A. Designated settlement systems |
| 1) | The Reserve Bank may designate a settlement system if such designation is in the interest of the integrity, effectiveness, efficiency or security of the payment system. |
| 2) | In considering the designation of any settlement system, the Reserve Bank may require from the settlement system- |
| a) | the rules of the settlement system; and |
| b) | any additional information it may deem appropriate. |
| 3) | In considering the designation of a settlement system, the Reserve Bank may have regard to any or all of the following matters: |
| a) | The purpose and scope of the settlement system; |
| b) | the rules of the settlement system; |
| c) | any laws or regulatory requirements relating to the operation of the settlement system, and the extent to which the settlement system complies with those laws or regulatory requirements; |
| d) | the importance of the settlement system to the national financial and payment system; |
| e) | any other matters that the Reserve Bank considers appropriate. |
| 4) | The Reserve Bank must designate a settlement system as a designated settlement system for purposes of this Act by notice in the Gazette and give written notice of such designation to the designated settlement system operator. |
| 5) | The notice in the Gazette must specify- |
| a) | the settlement system that is the subject of the designation; |
| b) | the person who is the operator of the settlement system that is the subject of the designation; and |
| c) | any terms and conditions to which the designation is subject. |
| 6) | The Reserve Bank may vary or revoke any designation made under subsection (4)- |
| a) | by amending or revoking any condition to which the designation is subject; or |
| b) | by making the designation subject to a new condition or new conditions. |
| 7) | In determining whether or not to vary or revoke a designation, the Reserve Bank may have regard to the matters mentioned in subsection (3) or any or all of the following: |
| a) | Any failure to comply with any condition to which the designation is subject; |
| b) | whether or not the designated settlement system has ceased to operate; |
| c) | whether or not the designated settlement system operator has knowingly furnished information or documents which are false or misleading in any material respect to the Reserve Bank in connection with the designation of the system; |
| d) | whether or not it is in the public interest to revoke the designation; |
| e) | any other matters that the Reserve Bank considers appropriate. |
| 8) |
| a) | No variation of the conditions to which a designation is subject or revocation of designation shall have retroactive effect. |
| b) | The variation or revocation shall not affect the validity or enforceability of the rules of the designated settlement system, nor shall it affect any payment to or out of the account of a settlement system participant or netting or settlement that took place, prior to the coming into effect of the variation or revocation. |
| 9) | The Reserve Bank shall, after having given written notice to the designated settlement system operator, vary or revoke the designation of the settlement system by notice in the Gazette. |