Central Bank responds to ICTA ‘non-response’

Central Bank responds to ICTA ‘non-response’

Central Bank responds to ICTA ‘non-response’

Written by Lahiru Fernando

16 Aug, 2017 | 2:41 am

In addition to the reports on the media regarding the Failed National Payment Platform project initiated by the ICTA, The Central Bank too has provided clarifications to certain important points regarding it.

The Central Bank has isssued a media release in response to an articile published on the Daily FT on Monday, August 14.

According to the release, CBSL has requested more information from the ICTA about the NPP, when a proposal was presented on the May 13, 2016.

It adds that the request was made in order to gather details on;

  • System Development
  • Operation manuals
  • System Security Compliance with System Standards
  • External System Audit Framework

The request was also made to gather further knowledge regarding the NPP, so that the CBSL could make an informed decision on its feasibility and security.

The CBSL says, the ICTA has not responded regarding these concerns up to date.

CBSL emphasises that any factors relating to a payment transaction, such as payment messaging will also fall under the scope of a payment transaction and therefore be subject to regulation by CBSL.

The Central Bank says that they had not received any response from the ICTA regarding this point, either.

The release says the CBSL is committed to the further development of payment systems in the country. It has no intention of hindering the promotion of digitization of the economy.

It lists out several key developments which have been made by the Central Bank in the recent past, including;

  • The introduction of Real Time Gross Settlement System
  • Nationwide T+1 cheque clearing system
  • Launch of LankaSign
  • Launch of SLIPS
  • Launch of LankaPay

and several others….

CBSL assures the parties concerned that it is indeed aware of the differences between a system and a platform.

Furthermore, it says that the CBSL is also aware that the NPP is a mechanism through which payment systems interact with customers and each other and carry out individual and consolidated functions.

CBSL therefore says the NPP constitutes an amalgamation of payments and settlement systems, which inherently is under the regulation and supervision of CBSL.

CBSL says it wishes to educate those concerned on the existence of the Monetary Law Act No. 58 of 1949 and the Payment and Settlement Systems Act, No. 28 of 2005, which adequately addresses the question of regulatory coverage.

In addition, the Central Bank says laws are not changed on a daily basis to accommodate the frequently evolving technological advancements.

However, they are designed to safeguard the interests of the public and encompass present and future technological advancements.

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