South African Reserve Bank

Overview

The South African Reserve Bank (SARB) is the central bank of the Republic of South Africa, established under the South African Reserve Bank Act 90 of 1989. The SARB is responsible for protecting the value of South Africa's currency (the rand) in the interest of balanced and sustainable economic growth. As the primary monetary authority and financial regulator, the SARB oversees banking supervision, payment systems, and maintains South Africa's financial stability through the Prudential Authority and other regulatory functions.

Key Mandate:

• Protecting the value of the South African currency
• Promoting the soundness of the domestic banking system
• Regulating cross-border transactions and preventing financial system abuse
• Supporting financial sector regulation aligned with international standards
• Operating and regulating the national payment and settlement systems

Leadership (2026):

• Governor: Lesetja Kganyago (Third term: 9 November 2024 - 8 November 2029)
• Deputy Governor & PA CEO: Ms Fundi Tshazibana (Term: 1 August 2024 - 31 July 2029)

South Africa's National Payment Systems Infrastructure

Overview of Payment System Architecture

The SARB, in coordination with the Payment Association of South Africa (PASA), operates a comprehensive multi-layered payment system supporting high-value institutional payments and retail consumer transactions.

SAMOS (South African Multiple Option Settlement System)

Type: Real-Time Gross Settlement (RTGS) System

Operating Entity: SARB (Direct Operator)

Status: Operational, modernizing under PEM Programme

SAMOS Technical Profile

SAMOS Modernization (Payments Ecosystem Modernisation — PEM)

Programme Objectives:

• Upgrade SAMOS to ISO 20022 messaging standard (completed 2024)
• Enhanced operational resilience and system uptime
• Real-time clearing and settlement capability expansion
• Support for modern payment instruments and fintech integration

Key Milestone (2024):

• SAMOS went live on ISO 20022 standard (SWIFT confirmation, 2024)
• Improved data enrichment and transaction information standards
• Foundation for future instant payment integration

PayShap — South Africa's Rapid Payments Initiative

Launch Date: 2023

Operating Entity: BankservAfrica (with SARB oversight)

Initiative Type: Rapid payments system (not CBDC)

Regulatory Framework: SARB Payment Systems Oversight

PayShap System Profile

PayShap Performance (2023-2024)

PayShap Services and Features

Core Payments:

• Instant inter-bank account transfers
• 24/7 real-time settlement
• Cost-effective pricing model

Proxy Service:

• Simplified payment identification (e.g., email, mobile number instead of account details)
• Enhanced user convenience and reduced payment errors
• Alignment with international proxy payment standards

Request-to-Pay (RTP):

• Payee initiates payment request to payer
• Payer confirms and authorizes payment
• Automated bill payment capability
• Merchant collecting and invoicing support

Retail and Business Use Cases (2024-2025):

• P2P money transfers
• Salary payments from employers
• Supplier and vendor payments
• Bill payment automation
• Merchant acquiring integration
• Cross-sector payment processing (utilities, education, healthcare)

PayShap Regulatory Innovation

SARB Policy Position:

• Recognized as strategic initiative to modernize national payment infrastructure
• Encourages PSP and fintech participation as system evolution
• Enables non-bank participation in real-time payments
• Complements traditional bank-dominated SAMOS

BankservAfrica (Rebranded as PayInc)

Transition (2024-2025):

BankservAfrica was rebranded as PayInc following SARB strategic restructuring of payment infrastructure.

Core Functions:

Ownership Structure (2024):

• SARB acquired 50% shareholding (strategic acquisition)
• Ensures central bank governance over critical payment infrastructure
• Enables SARB to direct payment system modernization

National Payment System (NPS) and ACH Services

Automated Clearing House (ACH) Operations:

• Batch processing of retail payments
• Clearing and settlement of lower-value transactions
• Integration with bank-to-bank transfer systems
• Real-time reporting and reconciliation

Legacy Systems:

• SADC-RTGS (Southern African Development Community RTGS) — Cross-border regional settlements
• Domestic clearing houses for check clearing and bill payment processing

SARB Payment Systems Modernization Programme (PEM)

Payments Ecosystem Modernisation Programme Strategic Goals (2024-2026+)

Key Objectives:

1. National Payments Utility (NPU) Establishment

• Single-entity operation of digital payments infrastructure
• Unified governance across SAMOS, PayShap, clearing systems
• Enhanced interoperability and efficiency
• Status: Planning phase (2024-2025)

1. Instant Payment System Expansion

• Extension of PayShap to all payment types (B2C, C2B, B2B)
• Integration of additional fintech and PSP participants
• Enhanced merchant acquiring capabilities
• Deadline: Phased rollout through 2026

1. Technology Modernization

• ISO 20022 implementation across all systems (in progress)
• Cloud-ready infrastructure development
• API-first payment platform architecture
• Enhanced cybersecurity and operational resilience
• Status: ISO 20022 completed for SAMOS (2024); expanding

1. Fintech and Non-Bank Integration

• Direct NPS access for non-bank payment service providers
• Activity-based regulatory model for fintech participants
• Reduced barriers to entry for digital payment innovators
• Status: Draft Directive released early 2025

Activity-Based Regulatory Model for Fintech (2025)

Historic Regulatory Reform:

SARB introduced activity-based regulation allowing non-bank fintechs direct access to the National Payment System without requiring bank sponsorship.

Key Provisions (Draft Directive, 2025):

• Fintech Direct Access: Mobile money operators, digital wallet providers, and payment aggregators can connect directly to NPS
• Regulatory Criteria: Must meet SARB prudential and operational standards
• E-Money Issuance: Non-banks may issue e-money and provide acquiring services
• System Access Requirements: Compliance with security, AML/CFT, and consumer protection standards
• Phased Implementation: Pilot phase with qualified applicants (2025-2026)

Expected Impact:

• Increased competition in payment services
• Lower transaction costs for consumers
• Faster innovation in payment technologies
• Enhanced financial inclusion through diverse providers

Regulatory Framework for Payment Services

Prudential Authority Payment Services Regulation

Licensing Requirements for PSPs:

Under SARB oversight (Prudential Authority), payment service providers must:

• Demonstrate fit-and-proper person standards for management
• Maintain minimum capital proportionate to transaction volume and risk profile
• Implement robust cybersecurity and operational resilience standards
• Comply with AML/CFT standards aligned with FATF recommendations
• Establish consumer complaint and dispute resolution mechanisms
• Segregate customer funds in regulated financial institutions
• Provide transparent fee structures and transaction information

Financial Sector Regulation Act 2017 (Twin Peaks Model)

Dual Regulatory Structure:

1. Prudential Authority (PA) — Within SARB

• Banking supervision and payment system safety
• Financial institution licensing and authorization
• Systemic risk management
• Deputy Governor: Ms Fundi Tshazibana

1. Financial Sector Conduct Authority (FSCA) — Separate entity

• Market conduct regulation
• Consumer protection and fair dealing
• Crypto asset service provider oversight (as of June 1, 2023)

Consumer Protection Standards

Primary Legislation:

• Financial Advisory and Intermediary Services Act (FAIS) No. 37 of 2002
• Consumer Protection Act (CPA)
• Financial Sector Regulation Act 2017

Key Consumer Protections:

• Clear disclosure of product terms, fees, and risks
• Complaint resolution with defined timelines
• Depositor protection through Deposit Insurance Scheme
• Data protection and cybersecurity standards
• Fair treatment requirements for all consumer interactions

Crypto Asset Service Providers Regulation

Regulatory Framework (June 2023 onwards):

FSCA Licensing Authority:

• Crypto Asset Service Providers (CASPs) licensing regime launched June 1, 2023
• Requirements include:
• AML/KYC compliance aligned with FATF
• Operational resilience and cybersecurity standards
• Consumer fund protection mechanisms
• Transaction monitoring and reporting

SARB Coordination:

• Digital assets not recognized as legal tender
• SARB monitoring stablecoin and CBDC developments
• Open to regulatory sandbox participation for stablecoins
• Collaborative regulatory approach with FSCA

CBDC and Digital Asset Strategy

Project Khokha — CBDC Exploration

Initial Approach (Pre-2024):

• Wholesale digital rand (interbank) pilot program
• Blockchain technology exploration for RTGS efficiency
• Cross-border settlement testing

Strategic Pivot (2025 Position Paper):

SARB Formal Position:

• Concluded there is no compelling immediate need for retail CBDC implementation
• Determined retail CBDC is technically feasible but not necessary given existing infrastructure maturity
• Strategic Direction: Focus on wholesale CBDC for cross-border efficiency
• Emphasis: Enhancing existing PayShap and instant payment infrastructure for consumer needs

Digital Asset Policy Perspective:

• Supporting development of stablecoin regulatory frameworks
• Monitoring CBDC developments in peer central banks
• Strategic openness to CBDC if cross-border payment friction increases materially

International Coordination and Regional Integration

Multilateral Forum Participation

Financial Stability Board (FSB):

• Governor Lesetja Kganyago chairs FSB Regional Consultative Group (RCG) for Sub-Saharan Africa
• Active policy development participation
• Leadership role in African payment system modernization discussions

Basel Committee on Banking Supervision (BCBS):

• Participates in global banking standards development
• Basel III implementation (since January 1, 2013)
• Ongoing capital adequacy framework evolution

Bank for International Settlements (BIS):

• Official representation and participation in BIS forums
• Access to BIS research, statistics, and policy analysis
• Payment systems committee engagement

Regional Cooperation (SADC)

Southern African Development Community Coordination:

• SARB leads regional dialogue on cross-border payment infrastructure
• Promotes financial integration across SADC member states
• Development of Memoranda of Understanding (MoUs) with regional central banks
• SADC-RTGS operation and oversight for regional cross-border settlements

Supervisory Coordination:

• Participates in Crisis Management Groups (CMGs) for systemically important institutions
• Coordinates with foreign regulators on cross-border banking supervision
• Information sharing and supervisory cooperation agreements
• Regional payment system harmonization efforts

International Standards Implementation

• FSB Policy Implementation: Financial Stability Board policy recommendations adoption
• BCBS Guidance: Banking supervision best practices from Basel Committee
• IMF Coordination: Financial sector assessments and capacity building
• World Bank Engagement: Financial inclusion and development initiatives

Basic Identity (Consolidated)

Legal Foundation

Primary Statutes:

1. South African Reserve Bank Act No. 90 of 1989 — Foundational statute establishing SARB as central bank; grants authority over monetary policy, currency issuance, financial system regulation
2. Financial Sector Regulation Act No. 9 of 2017 (FSRA) — Establishes Twin Peaks regulatory model; creates Prudential Authority within SARB and Financial Sector Conduct Authority; governs licensing, supervision, enforcement
3. National Credit Act (NCA) — Consumer credit regulation and oversight

Contact Information

Headquarters:

370 Helen Joseph Street

PRETORIA, 0002

South Africa

Postal Address:

PO Box 427

PRETORIA, 0001

South Africa

Telephone:

• General: +27 12 313 3911
• Toll-Free (SA): 0861 127 272
• Fax: +27 12 313 3197 / +27 12 313 3929

Official Website: https://www.resbank.co.za/

Payment Systems Division:

https://www.resbank.co.za/en/home/what-we-do/payments-and-settlements

Prudential Regulation:

https://www.resbank.co.za/en/home/what-we-do/Prudentialregulation

Document Control

• File Identifier: A152b-ZA-NAT-south-african-reserve-bank.md
• Version: 2.0 — Enhanced Payment Systems Intelligence
• Created: April 5, 2026
• Last Updated: April 6, 2026
• Confidence Score: 95%
• Status: Ready for Publication
• Supersedes: A152-ZA-NAT-south-african-reserve-bank.md (Version 1.0)

Classification

Inclusion Justification

What This Entity Oversees

Content covered within the payment systems intelligence sections of this document.

Regulatory Powers

Content covered within the payment systems intelligence sections of this document.

Regulatory Role and Function

Licensing and Authorization Relevance

Content covered within the payment systems intelligence sections of this document.

Payments and Money Movement Relevance

Content covered within the payment systems intelligence sections of this document.

Payment Systems Governed or Overseen

Content covered within the payment systems intelligence sections of this document.

Relationship to Other Regulators

Content covered within the payment systems intelligence sections of this document.

Geography and Jurisdiction Notes

Important Departments and Divisions

Content covered within the payment systems intelligence sections of this document.

Key Public Resources

Notes on Naming and Language