National Payment System Act, 1998 (Act No. 78 of 1998)

6. Clearing provisions and designated clearing system participants
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1)No person may clear payment instructions unless that person is a-
a)Reserve Bank settlement system participant; or
b)bank, mutual bank, a designated clearing system participant, a co-operative bank or branch of a foreign institution that is allowed to clear in terms of section 4(2)(d)(i).

 

2)Any person that contravenes the provisions of subsection (1) is guilty of an offence.

 

3)
a)The Reserve Bank may designate a clearing system participant by notice in the Gazette, which notice must specify-
i)the name of the clearing system participant that is the subject of the designation;
ii)the Reserve Bank settlement system participant or participants associated with that clearing system participant; and
iii)any terms and conditions to which the designation is subject.
b)The Reserve Bank may vary or revoke any designation made under paragraph (a)-
i)by amending or revoking any condition to which the designation is subject; or
ii)by making the designation subject to a new condition or new conditions.
c)In determining whether or not to vary or revoke a designation, the Reserve Bank may have regard to any or all of the following:
i)Any failure to comply with any condition to which the designation is subject;
ii)whether or not the designated clearing system participant has knowingly furnished information or documents which are false or misleading in any material respect to the Reserve Bank in connection with the designation;
iii)whether or not it is in the public interest to revoke the designation;
iv)any other matters that the Reserve Bank considers appropriate.
d)No variation of the conditions to which a designation is subject or revocation of designation shall have retroactive effect.
e)The Reserve Bank must, after having given written notice to the Reserve Bank settlement system participant who settles payment obligations on behalf of the designated clearing system participant and to the designated clearing system participant, vary or revoke the designation of that designated clearing system participant by notice in the Gazette.