The RTGS Strategy Review has been established to agree a blueprint for the next generation of the Bank of England’s Real-Time Gross Settlement (RTGS) system.
On an average day, RTGS settles around £500 billion between banks. In turn, those payments back the vast majority of payments in the real economy. RTGS also provides the mechanism through which the Bank provides liquidity for financial stability purposes and implements Monetary Policy Committee (MPC) decisions on Bank Rate.
The way payments are made has changed dramatically in recent years, reflecting changes in the needs of households and companies, changes in technology, and an evolving regulatory landscape. The range of payment providers is growing rapidly. Given the implications of these changes for the Bank’s mission and for users, businesses and regulators, it is important that the Bank consider how RTGS will need to evolve to meet and shape payments trends in the coming decades. That is why the Bank has launched a broadly scoped review of RTGS, which will consider:
- What should the Bank’s policy objectives be in the delivery of sterling settlement in central bank money?
- What functions should the UK high-value payment system have?
- Who should be able to access it and how?
- What should the role of the Bank of England be in the delivery of that service?
The Bank will seek input on these questions from a wide range of stakeholders in first part of 2016, before consulting formally on a small number of alternative ways forward later in the year. The intention is that by the end of 2016 we will have agreed a blueprint for high-value sterling settlement in the years ahead, with technological development of that blueprint beginning in 2017.
17 June 2016: Progress update on the Bank’s blueprint for a new RTGS system.
It has been five months since Deputy Governor for Markets and Banking, Minouche Shafik, announced that the Bank planned to design a blueprint for a new RTGS system at the heart of the UK’s payment system in a speech on January 27 2016. This is a progress update on developing this blueprint.
Progress update on the Bank’s blueprint for a new RTGS system
16 September 2016: RTGS consultation paper
We are consulting on the next generation of our Real-Time Gross Settlement service.
The consultation paper is informed by a wide-ranging outreach programme, launched in January 2016 by Minouche Shafik, Deputy Governor for Markets and Banking. Our dedicated review team has met with current users and potential future users of the service, authorities, payment system operators, experts, and broader public interest groups. Our proposals are intended to provide broader access, higher resilience, greater interoperability, and a wider range of user functionality compared to the RTGS of today.
We are seeking views on the future RTGS service from the widest possible range of people with a stake in the future of sterling payments. A timetable for delivery of the new service will be published in 2017, with a provisional aim of completion in 2020.
For further information, see the full consultation paper. Responses to the consultation must be submitted by 7 November 2016. Submissions do not require all questions to be answered.
November 2016: The consultation is now closed. All responses received will be used to help shape the Bank’s decisions on the final high-level blueprint for the future RTGS service, which will be published in early 2017 alongside a summary of responses received.
13 October 2016: RTGS industry briefings slide presentation
Following the two industry briefings we hosted on 4 and 11 October 2016 please find available the slide presentation.