A Brief Note On The Bank For International Settlements

996 Words Nov 27th, 2014 4 Pages
1.1.1 Definition of Payment Systems
Under the Bank for International Settlements (BIS) a payment system is defined as consists of instruments, banking procedures, and typically interbank funds transfer systems that ensure and facilitate the circulation of money. In essence, it facilitates corporations, businesses and consumers to transfer funds to one another. (Bank Negara Malaysia, 2014)

1.1.2 Types of payments Figure 1.1.2 Types of Payment Systems
Source: - Bank Negara, 2014
Large Value Payment System
A systemically important payment system is also known as large value payment system (LVPS) which typically processes high-value and time-critical payments. Example of large value payment system in Malaysia is Real Time Electronics Transfer of Funds and Securities (RENTAS) and it is operated under Real Time Gross Settlement (RTGS) basis. (Bank Negara, 2014)

Real Time Electronics Transfer of Funds and Securities (RENTAS)
The objective of RENTAS is to improve the overall efficiency of the large value payment system, particularly in respect of reducing interbank settlement risk. It enables the transfer and settlement of high value interbank funds and scripless securities transactions. There are two types of transactions handled by RENTAS namely Interbank Funds Transfer System (IFTS) and Scripless Securities Transfer System (SSTS). (Bank Negara, 2014)
Retail Payment System
In Malaysia, the retail payments are divided into three types of Retail Payment Systems which is Retail…
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