Business | Banking

DIFC to implement real time payments

The Dubai International Financial Centre (DIFC) has signed a Memorandum of Understanding (MoU) with the UAE Central Bank under which the bank becomes the lead regulator for Real-time Automated Payments in DIFC (Rapid).

  • Staff Report
  • Published: 23:54 June 22, 2008
  • Gulf News

Dubai: The Dubai International Financial Centre (DIFC) has signed a Memorandum of Understanding (MoU) with the UAE Central Bank under which the bank becomes the lead regulator for Real-time Automated Payments in DIFC (Rapid).

Rapid is a DIFC initiative to provide a real-time gross settlement (RTGS) payment systems infrastructure within the DIFC to financial institutions operating within the centre and throughout the region.

Sultan Bin Nasser Al Suwaidi, Governor of the Central Bank, said: "As a pioneering system, Rapid looks set to revolutionise payment methods at the region's leading financial centre.

"We are committed to ensuring the reliability and integrity of all financial products and services in the region."

International practices

As part of the agreement, the central bank becomes the lead regulator for the payment systems implemented under Rapid and has ultimate responsibility to ensure that Rapid complies with the Core Principles for Systemically Important Payment Systems (CPSIPS) as issued by the Bank for International Settlements (BIS).

Dr Omar Bin Sulaiman, DIFC Governor, said: "We are delighted that the central bank will govern the payment systems implemented under Rapid."

As the lead regulator of Rapid, the central bank will undertake an initial and periodic assessment of Rapid against the CPSIPS criteria and other international best practices.

DIFC will establish and maintain Rapid legally and commercially. It will establish and maintain appropriate governance powers and structures in compliance with CPSIPS and other best practices.

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