Domestic Settlement Rules Management 

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How We Do and What Frameworks We Use We operate through formal industry governance and legal frameworks. Our processes are governed by the National Payment System Act and SARB directives, as well as by the association’s rulebook. Each payment stream (like securities or derivatives) is managed under a Payment Clearing House (PCH) agreement that specifies clearing rules and service levels. We also follow international best practices like CPMI-IOSCO PFMI and ISO 20022. How We Do and What Frameworks We Use We operate through formal industry governance and legal frameworks. Our processes are governed by the National Payment System Act and SARB directives, as well as by the association’s rulebook. Each payment stream (like securities or derivatives) is managed under a Payment Clearing House (PCH) agreement that specifies clearing rules and service levels. We also follow international best practices like CPMI-IOSCO PFMI and ISO 20022. 
The Domestic Settlement Rules Management division within the South African Reserve Bank (SARB) holds the formal responsibility for overseeing the structure, compliance, and effectiveness of South Africa’s domestic settlement ecosystem. This authority is conferred under the National Payment System Act (Act No. 78 of 1998). Its function is essential to maintaining trust, legal certainty, and operational resilience in the financial system by ensuring that all transactions clear and settle within a regulated, risk-mitigated environment.

Strategic Purpose To uphold the integrity, stability, and efficiency of the domestic payment system by defining, maintaining, and enforcing a comprehensive framework of clearing and settlement rules aligned with national and international standards.

Mandate Scope
1. Regulatory Oversight
     Define and enforce the Domestic Settlement Rulebook.
     Govern the eligibility and obligations of settlement participants.
2. System Integrity & Finality
     Ensure final, irrevocable settlement of transactions through SAMOS.
     Oversee settlement processes across EFTs, cards, real-time payments, and high-value transactions.
3. Risk Management
    Apply structured frameworks to reduce systemic and operational risks.
    Monitor participant compliance and enforce breach protocols.
4. Modernisation Alignment
    Coordinate integration of global standards such as ISO 20022.
    Support innovation in real-time clearing and retail settlement models.
5. Transparency & Access
    Publish regulations, annual reports, and operational guidance.
    Enable document requests and stakeholder engagement through SARB channels.

Strategic Value to South Africa
Preserves confidence in the national financial system • Reduces settlement risk in all interbank transactions • Enables safe growth of digital and real-time payment ecosystems • Provides a legally enforceable backbone for the evolving financial market.
Reporting Line & Governance
This division operates within SARB’s broader financial system oversight mandate and reports into its Prudential Cluster and Payment System Oversight Committee. Regulatory actions and updates are reviewed in coordination with National Treasury and relevant statutory bodies.

How We Do and What Frameworks
We Use We operate through formal industry governance and legal frameworks. Our processes are governed by the National Payment System Act and SARB directives, as well as by the association’s rulebook. For example, each payment stream (like securities or derivatives) is managed under a Payment Clearing House (PCH) agreement that specifies clearing rules and service levels . We work with system operators (authorized PSOs) who clear the instructions, and then settlement is effected in central bank money via SAMOS . Within our unit, we use specialist committees and working groups to develop rules: for instance, there are subcommittees for electronic securities, derivatives margins, cash settlement, and immediate payments . Proposed rule changes are discussed collaboratively in these groups and then recommended up the governance chain. We also follow international best practices – aligning with global standards like the CPMI IOSCO Principles for Financial Market Infrastructures (PFMI) and adopting ISO 20022 messaging – to keep our settlement framework robust and up to date.How We Do and What Frameworks We Use We operate through formal industry governance and legal frameworks.
 Our processes are governed by the National Payment System Act and SARB directives, as well as by the association’s rulebook. For example, each payment stream (like securities or derivatives) is managed under a Payment Clearing House (PCH) agreement that specifies clearing rules and service levels . We work with system operators (authorized PSOs) who clear the instructions, and then settlement is effected in central bank money via SAMOS . Within our unit, we use specialist committees and working groups to develop rules: for instance, there are subcommittees for electronic securities, derivatives margins, cash settlement, and immediate payments . Proposed rule changes are discussed collaboratively in these groups and then recommended up the governance chain. We also follow international best practices – aligning with global standards like the CPMI IOSCO Principles for Financial Market Infrastructures (PFMI) and adopting ISO 20022 messaging – to keep our settlement framework robust and up to date.