The South African Reserve Bank has issued a directive requiring settlement system participants to regularise the execution of low-value cross-border electronic funds transfers within the Common Monetary Area (CMA) by migrating these transactions out of the SADC real-time gross settlement (SADC-RTGS) system and into the Transactions Cleared on an Immediate Basis (TCIB) retail payment scheme. The directive targets payments to and from the CMA, defined as Eswatini, Lesotho, Namibia and South Africa, and applies to cross-border electronic funds transfers not exceeding ZAR 5 million. Participants routing such transfers via SADC-RTGS must begin the migration process from the directive’s effective date, stop executing these payments through SADC-RTGS by 31 March 2027, and execute all such payments via TCIB from 1 April 2027. The directive also requires processing to be efficient, transparent and cost-effective without negatively affecting consumers and businesses. The directive takes effect on publication in the Government Gazette and may be supplemented or amended. Contravention constitutes an offence under section 12 of the National Payment System Act and may result in a fine or imprisonment, or both.
South African Reserve Bank 2025-04-01
South African Reserve Bank directs settlement system participants to move low value Common Monetary Area cross-border transfers from SADC-RTGS to TCIB by 1 April 2027
The South African Reserve Bank mandates settlement system participants to migrate low-value cross-border electronic funds transfers within the Common Monetary Area from the SADC real-time gross settlement system to the Transactions Cleared on an Immediate Basis retail payment scheme by 1 April 2027. This applies to transfers not exceeding ZAR 5 million and aims for efficient, transparent, and cost-effective processing. Non-compliance may result in penalties under the National Payment System Act.