• What is the Domestic Settlement Rules Management Unit (Settlement System Participant Group)?
The DSRMU is the collective body of banks that manage interbank settlements. It is constituted to determine and recommend the rules governing how settlement participants clear payments . In other words, it serves as the official industry forum for drafting and updating the domestic settlement procedures.
• Who can become a settlement participant? Participation is restricted to approved members of the payment system. In practice, this means South African-registered banks that have met the National Payment System entry criteria. Only these banks may hold a SARB settlement account . Other financial institutions (such as clearing agents or fintech firms) do not get an RTGS account but can join the system via sponsorship by a settlement bank. • How are settlement rules developed?
Rule changes are developed by consensus within the participant group and its subcommittees, then put forward for regulatory approval. The group’s charter is to “determine and recommend settlement rules and procedures” to the governing council . In practice, proposed amendments are discussed in working groups (covering each payment stream) and, once agreed, are endorsed through the established approval processes.
• What legal framework governs settlement? Settlement operations are governed by South African law (the NPS Act and related directives) and by the association’s rules. The NPS Act mandates the SARB to designate a Payment System Management Body (PSMB) and to ensure a safe, efficient payment system . We operate under these laws and the SARB’s rules. In addition, international standards (such as ISO 20022 and the BIS-IOSCO PFMI) inform our technical specifications and risk controls.
• What is a Payment Clearing House (PCH) Participant Group?
A PCH is a formal clearing arrangement between system participants. By definition, a PCH is “an arrangement between two or more system participants governing the clearing and settlement of payment instructions between such participants” . Each payment stream (cards, EFT, cash, etc.) has its own PCH. A PCH Participant Group is the committee of member banks that oversees the rules and agreements for that particular clearing house.
• How do I apply to join or get access?
You must apply for membership in the recognized payment body to gain settlement access. Typically, a bank seeking to become a settlement participant submits an application to the payments association (the PSMB). Once approved, it is authorized by the central bank and can open a settlement account or sign onto the relevant PCH agreements. As noted, non-bank entities cannot get a direct account – they need a sponsoring bank to carry out clearing and settlement on their behalf .
• Where can I find more information or official publications?
Detailed information is available on the association’s website and publications portal