South Africa
National Payment System Act, 1998
Act 78 of 1998
- Published in Government Gazette 19402 on 28 October 1998
- Assented to on 20 October 1998
- Commenced on 28 October 1998
- [This is the version of this document from 28 February 2014.]
- [Amended by National Payment System Amendment Act, 2004 (Act 22 of 2004) on 30 October 2004]
- [Amended by National Credit Act, 2005 (Act 34 of 2005) on 1 June 2006]
- [Amended by Co-operative Banks Act, 2007 (Act 40 of 2007) on 1 August 2008]
- [Amended by Financial Services Laws General Amendment Act, 2008 (Act 22 of 2008) on 1 November 2008]
- [Amended by Financial Markets Act, 2012 (Act 19 of 2012) on 3 June 2013]
- [Amended by Financial Services Laws General Amendment Act, 2013 (Act 45 of 2013) on 28 February 2014]
1. Definitions
In this Act, unless the context otherwise indicates—"bank" means a bank as defined in section 1 of the Banks Act;"Banks Act" means the Banks Act, 1990 (Act No. 94 of 1990);"branch of a foreign institution" means a branch by means of which a foreign institution conducts the business of a bank in the Republic in terms of a written authorisation granted by the Registrar of Banks in terms of section 18A of the Banks Act;"clear" or "clearing" means the exchange of payment instructions;"clearing, netting and settlement agreements" means written agreements with regard to clearing, netting or settlement, concluded between clearing system participants or settlement system participants;[definition of "clearing, netting and settlement agreements" substituted by section 1(a) of Act 22 of 2004 and by section 33(a) of Act 22 of 2008]"clearing system participant" means a bank, a mutual bank, a co-operative bank, a branch of a foreign institution or designated clearing system participant that clears in the manner contemplated in section 4(2)(d)(i);[definition of "clearing system participant" inserted by section 33(b) of Act 22 of 2008]"Companies Act" means the Companies Act, 1973 (Act No. 61 of 1973);[definition of "Companies Act" inserted by section 1(a) of Act 22 of 2004]"co-operative bank" has the meaning assigned to it in section 1 of the Co-operative Banks Act, 2007;[definition of "co-operative bank" inserted by section 90(1)(a) of Act 40 of 2007]"designated clearing system participant" means a person specified in the notice referred to in section 6(3)(a);[definition of "designated clearing system participant" inserted by section 33(c) of Act 22 of 2008]"Co-operative Banks Act" means the Co-operative Banks Act, 2007;[definition of "Co-operative Banks Act" inserted by section 90(1)(a) of Act 40 of 2007]"designated settlement system" means a settlement system designated in terms of section 4A;[definition of "designated settlement system" inserted by section 1(a) of Act 22 of 2004]"designated settlement system operator" means the person specified in the notice referred to in section 4A(5) as the operator of that system;[definition of "designated settlement system operator" inserted by section 1(a) of Act 22 of 2004]"designated settlement system participant" means—(a)a person that is a participant in the designated settlement system in accordance with the rules governing the operation of the system; or(b)a person that is an operator of the designated settlement system;[definition of "designated settlement system participant" inserted by section 1(a) of Act 22 of 2004]"money" means a banknote or coin issued by the Reserve Bank in terms of section 10(1)(a)(iii), read with section 14 of the South African Reserve Bank Act;"mutual bank" means a mutual bank as defined in section 1 of the Mutual Banks Act;"Mutual Banks Act" means the Mutual Banks Act, 1993 (Act No. 124 of 1993);"netting" means the determination of the nett payment obligations between two or more clearing system participants within a payment clearing house or the determination of the nett settlement obligations between two or more settlement system participants within a settlement system;[definition of "netting" substituted by section 1(b) of Act 22 of 2004 and by section 33(d) of Act 22 of 2008]"payment clearing house (PCH)" means an arrangement between two or more clearing system participants and Reserve Bank settlement system participants, excluding a designated settlement system operator, governing the clearing or netting of payment instructions between those clearing system participants and Reserve Bank settlement system participants;[definition of "payment clearing house (PCH)" substituted by section 1(c) of Act 22 of 2004 and by section 33(e) of Act 22 of 2008]"payment instruction" means an instruction to transfer funds or make a payment;[definition of "payment instruction" substituted by section 1(d) of Act 22 of 2004]"payment obligation" means an indebtedness that is owed by one clearing system participant or settlement system participant to another clearing system participant or settlement system participant as a result of the clearing of one or more payment instructions;[definition of "payment obligation" substituted by section 1(e) of Act 22 of 2004 and by section 33(f) of Act 22 of 2008]"payment system" means a system that enables payments to be effected or facilitates the circulation of money and includes any instruments and procedures that relate to the system;[definition of "payment system" substituted by section 1(f) of Act 22 of 2004]"payment system management body" means a body recognised by the Reserve Bank in terms of section 3(1);"PCH system operator" means a person, other than a designated settlement system operator, that clears on behalf of any two or more Reserve Bank settlement system participants;[definition of "PCH system operator" inserted by section 1(g) of Act 22 of 2004]"person" includes a trust;[definition of "person" substituted by section 1(h) of Act 22 of 2004]"Reserve Bank" means the South African Reserve Bank referred to in section 2 of the South African Reserve Bank Act;"Reserve Bank settlement system" means a settlement system established and operated by, or under the control of, the Reserve Bank;[definition of "Reserve Bank settlement system" inserted by section 1(i) of Act 22 of 2004]"Reserve Bank settlement system participant" means—(a)the Reserve Bank;(b)a bank, a mutual bank, a co-operative bank or a branch of a foreign institution; or(c)a designated settlement system operator,that participates in the Reserve Bank settlement system;[definition of "Reserve Bank settlement system participant" inserted by section 1(i) of Act 22 of 2004 and substituted by section 90(1)(b) of Act 40 of 2007]"secondary co-operative bank" means a secondary co-operative bank as defined in section 1 of the Co-operative Banks Act, 2007;[definition of "secondary co-operative bank" inserted by section 90(1)(c) of Act 40 of 2007]"settlement" means the discharge of settlement obligations;[definition of "settlement" inserted by section 1(i) of Act 22 of 2004]"settlement instruction" means an instruction given to a settlement system by a settlement system participant or by a PCH system operator on behalf of a Reserve Bank settlement system participant to effect settlement;[definition of "settlement instruction" substituted by section 1(j) of Act 22 of 2004]"settlement obligation" means an indebtedness that is owed by one settlement system participant to another as a result of one or more settlement instructions;[definition of "settlement obligation" substituted by section 1(k) of Act 22 of 2004]"settlement system" means a system for the discharge of payment or settlement obligations or the discharge of payment and settlement obligations between participants in that system;[definition of "settlement system" substituted by section 1(l) of Act 22 of 2004]"settlement system participant" means—(a)a Reserve Bank settlement system participant; or(b)a designated settlement system participant;[definition of "settlement system participant" inserted by section 1(m) of Act 22 of 2004]"South African Reserve Bank Act" means the South African Reserve Bank Act, 1989 (Act No. 90 of 1989);"systemic risk" means the risk that failure of one or more settlement system participants, for whatever reason, to meet their payment obligations, including the payement obligations of clearing system participants, or their settlement obligations may result in any or all of the other settlement system participants being unable to meet their respective payment or settlement obligations;[definition of "systemic risk" inserted by section 1(n) of Act 22 of 2004 and substituted by section 33(g) of Act 22 of 2008]"system operator" means a person, other than a designated settlement system operator, authorised in terms of section 4(2)(c) to provide services to any two or more persons in respect of payment instructions.[definition of "system operator" substituted by section 1(o) of Act 22 of 2004]"tertiary co-operative bank" means a tertiary co-operative bank as defined in section 1 of the Co-operative Banks Act, 2007;[definition of "tertiary co-operative bank" inserted by section 90(1)(d) of Act 40 of 2007]"system participant" [definition of "system participant" deleted by section 1(p) of Act 22 of 2004]2. Powers and duties of Reserve Bank regarding payment system
3. Payment system management body
4. Objects and rules of payment system management body
4A. Designated settlement systems
5. Settlement provision
6. Clearing provisions and designated clearing system participants
[heading substituted by section 36(a) of Act 22 of 2008]6A. Effectiveness and efficiency of the National Payment System
7. Payments to third persons
A person may as a regular feature of that person’s business accept money or payment instructions from any other person for purposes of making payment on behalf of that other person to a third person to whom that payment is due, if—8. Curatorship, judicial management or liquidation
9. Utilisation of assets provided as security
Despite anything to the contrary in any law relating to insolvency, any asset of a settlement system participant which was provided prior to the issue of any order for that settlement system participant’s winding-up by that participant to the Reserve Bank or the designated settlement system operator as security for a loan in respect of its settlement obligations, may be utilised by the Reserve Bank or the designated settlement system operator, as the case may be, to the extent required for the discharge of those settlement obligations of the settlement system participant.[section 9 substituted by section 10 of Act 22 of 2004]10. Information
11. Settlement of disputes
12. Directives by Reserve Bank
13. Retention of records
13A. Application for court order
Irrespective of whether criminal proceedings have been or may be instituted against a person in respect of an offence in terms of any section of this Act, the Reserve Bank may apply to a High Court having jurisdiction for an order directing a person to comply with this Act or a directive issued in terms of this Act.[section 13A inserted by section 15 of Act 22 of 2004]14. Penalties
Any person convicted of an offence referred to in—15. Review of Act
The Reserve Bank must, with the co-operation of the payment system management body, establish a standing committee—16. Short title
This Act is called the National Payment System Act, 1998.History of this document
28 February 2014 this version
03 June 2013
Amended by
Financial Markets Act, 2012
Read this version
01 November 2008
01 August 2008
Amended by
Co-operative Banks Act, 2007
Read this version
01 June 2006
Amended by
National Credit Act, 2005
Read this version
30 October 2004
28 October 1998
20 October 1998
Assented to
Subsidiary legislation
Title | Numbered title |
---|---|
Designation of Continuous Linked Settlement System as a Designated Settlement Systems, 2004 | General Notice 2459 of 2004 |
Cited documents 6
Legislation 6
Documents citing this one 67
Gazette 54
- South Africa Government Gazette Regulation Gazette dated 1999-10-27 number 20581
- South Africa Government Gazette Regulation Gazette dated 2010-10-22 number 33655
- South Africa Government Gazette Regulation Gazette dated 2020-02-21 number 43033
- South Africa Government Gazette Regulation Gazette dated 2020-04-02 number 43199
- South Africa Government Gazette Regulation Gazette dated 2020-04-21 number 43242
- South Africa Government Gazette Regulation Gazette dated 2020-09-11 number 43703
- South Africa Government Gazette Regulation Gazette dated 2020-11-20 number 43914
- South Africa Government Gazette Regulation Gazette dated 2021-12-17 number 45645 part 1
- South Africa Government Gazette Regulation Gazette dated 2022-12-23 number 47765
- South Africa Government Gazette dated 1999-04-08 number 19935
- South Africa Government Gazette dated 2002-08-26 number 23763 part 1
- South Africa Government Gazette dated 2002-08-26 number 23763 part 2
- South Africa Government Gazette dated 2002-09-27 number 23868
- South Africa Government Gazette dated 2002-12-13 number 24167
- South Africa Government Gazette dated 2003-01-24 number 24262 part 2
- South Africa Government Gazette dated 2003-02-05 number 24331
- South Africa Government Gazette dated 2003-02-10 number 24344 part 1
- South Africa Government Gazette dated 2003-02-18 number 24415
- South Africa Government Gazette dated 2003-02-24 number 24649
- South Africa Government Gazette dated 2003-02-28 number 24661
- South Africa Government Gazette dated 2003-02-28 number 24662
- South Africa Government Gazette dated 2003-03-03 number 24666
- South Africa Government Gazette dated 2003-03-03 number 24667
- South Africa Government Gazette dated 2003-03-03 number 24668
- South Africa Government Gazette dated 2004-03-31 number 26206
- South Africa Government Gazette dated 2004-08-16 number 26675
- South Africa Government Gazette dated 2004-10-30 number 26949
- South Africa Government Gazette dated 2004-10-30 number 26953
- South Africa Government Gazette dated 2006-02-24 number 28546
- South Africa Government Gazette dated 2006-05-26 number 28867
- South Africa Government Gazette dated 2007-09-06 number 30261
- South Africa Government Gazette dated 2008-02-22 number 30802
- South Africa Government Gazette dated 2008-10-07 number 31491
- South Africa Government Gazette dated 2011-05-27 number 34323
- South Africa Government Gazette dated 2011-08-12 number 34510
- South Africa Government Gazette dated 2013-07-19 number 36666
- South Africa Government Gazette dated 2013-08-30 number 36779
- South Africa Government Gazette dated 2013-10-25 number 36951
- South Africa Government Gazette dated 2014-01-16 number 37237
- South Africa Government Gazette dated 2015-06-26 number 38894
- South Africa Government Gazette dated 2015-12-11 number 39504
- South Africa Government Gazette dated 2017-06-23 number 40930 part 1
- South Africa Government Gazette dated 2017-08-22 number 41060 part 1
- South Africa Government Gazette dated 2018-12-14 number 42100
- South Africa Government Gazette dated 2020-05-29 number 43358
- South Africa Government Gazette dated 2020-06-19 number 43447
- South Africa Government Gazette dated 2020-12-04 number 43962 part 1
- South Africa Government Gazette dated 2021-03-12 number 44274
- South Africa Government Gazette dated 2021-06-11 number 44701
- South Africa Government Gazette dated 2021-12-17 number 45649
- South Africa Government Gazette dated 2022-04-14 number 46242 part 1
- South Africa Government Gazette dated 2022-07-15 number 47019
- South Africa Government Gazette dated 2022-11-29 number 47596
- South Africa Government Gazette dated 2023-12-14 number 49891
Judgment 6
- ADCORP Fulfilment Services (Pty) Ltd v Prodigy Human Capital Architects (Pty) Ltd; In Re: Prodigy Human Capital Architects (Pty) Ltd v CCI SA (Umhlanga) (Pty) Ltd and Others (2018/17932) [2023] ZAGPJHC 579 (26 May 2023)
- Barko Financial Services (Pty) Limited v National Credit Regulator and Another (415/2013) [2014] ZASCA 114 (18 September 2014)
- Clientele Life Assurance Company Ltd and Another v Payment Association of South Africa (2021-42435) [2023] ZAGPJHC 991 (4 September 2023)
- Diener NO v Minister of Justice and Others (926 of 2016) [2017] ZASCA 180 (1 December 2017)
- Goldstar Finance (Pty) Ltd and Others v Capitec Bank (Pty) Ltd and Another (16589/23) [2023] ZAWCHC 199 (31 December 2023)
- Spar Group Ltd v Absa Bank Ltd (74870/2019) [2020] ZALCJHB 63 (14 August 2020)
Legislation 7
- Designation of Continuous Linked Settlement System as a Designated Settlement Systems, 2004
- Directive 1 of 2022: Conduct of accountable institutions relating to "wire transfers" or electronic funds transfers
- Directive for Conduct within the National Payment System in respect of the Financial Action Task Force Recommendations for Electronic Funds Transfers
- Disaster Management Act: Regulations relating to COVID-19
- Financial Markets Act, 2012
- Financial Sector Regulation Act, 2017
- National Credit Act, 2005