Kathmandu. Nepal Rastra Bank (NRB) has launched ‘Framework for Identifying SemanticAlly Important Payment System (SIPS).
According to the central bank, the SIPS has been prepared with the objective of making the operation and management of such systems more robust, secure and effective by identifying payment systems.
The main objective of SIPS is to identify such payment systems, whose disruption can pose and transmit risk to the wider financial system. It also aims to ensure the flexibility and continuity of critical payment systems during periods of financial stress or operational disruptions.
It also aims to identify different types of risks and understand how they can arise and transmit to the system, the central bank said.
According to nrb, SIPS will evaluate and analyze risks to develop appropriate and effective mechanisms for surveillance, management and control. “Punctuality and settlement certainty are important to reduce systemic risk,” the NRB said, adding that payments should be conducted in real-time or completed within the same trading day for netting arrangements. A clearly defined finality rule should provide an assurance to participants about the immutability of the transaction. ’
