South Africa is changing the way its national payment system is managed, giving the South African Reserve Bank a larger role in overseeing the infrastructure that moves money between banks, businesses and consumers.

The central bank said Tuesday that it is withdrawing its recognition of the Payments Association of South Africa as a payment system management body.

The change is part of a broader effort to modernize the country’s payment system and strengthen its regulation and oversight.

The first stage of the transition begins Aug. 11, with some PASA functions, employees and intellectual property moving to the Reserve Bank.

The remaining functions and people involved in the process, including those transferring to PayInc, are expected to move by Sept. 2.

For consumers and businesses, the changes should not affect everyday transactions. The SARB said card payments, electronic funds transfers, debit orders and ATM withdrawals will continue to operate as normal during the transition.

SARB takes greater control

The move gives the Reserve Bank a more direct role in the management of South Africa’s national payment system. The central bank already operates, regulates and oversees the system and is responsible for payment-system policy.

Under the new structure, the SARB will take on functions that were previously handled through PASA.

The changes are intended to improve coordination across the industry as payment methods evolve and new technologies reshape the way people and companies move money.

The Reserve Bank said the reforms are aimed at keeping the payment system safe, efficient and responsive to users.

The changes also come as South Africa expands instant and electronic payment services and looks to modernize financial infrastructure.

Payments to continue as normal

Despite the changes at the management level, there is no planned interruption to payment services. Consumers will still be able to use bank cards, electronic transfers, debit orders and ATMs as they normally would.

PASA will continue carrying out its existing responsibilities during the transition and will work with the SARB, PayInc and other affected parties to complete the handover.

The central bank said stakeholders will also continue to have opportunities to engage through established consultation processes.

What changes for South Africa

The restructuring is part of a wider push to modernize South Africa’s payments infrastructure.

The country’s payment system supports transactions across banks and other financial institutions, making its regulation and operation important to the broader financial system.

PASA has been the payment system management body recognized by the SARB and has played a central role in organizing, managing and regulating the activities of its members within the national payment system.

PayInc, formerly known as BankservAfrica, operates as a major payments clearing house and provides clearing, settlement and other payment services.

The company says it connects South Africa’s payments system and is the largest automated clearing house in Africa.

The Reserve Bank said the transition will give stakeholders a clearer structure for managing South Africa’s national payment system while maintaining the services used by consumers and businesses every day. The process is expected to be completed in stages through Sept. 2.