The Four Advantages Of The National Payment System

Decent Essays
Question 1

1.1 As per the scenario the following individuals were identified as follow:

1.1.1 The Financial Service Provider (FSP): ABC Bank who is a registered Financial Service Provider
1.1.2 The Key Individual : Margaret Ngubane – She manage and supervise the activities of the ABC Branch and is also a representatives, and maintains the representatives register
1.1.3 Provides intermediary services: Nishal Singh – Still working under supervision and only provides guidance to the client to which financial product best suit their needs.
1.2 No, in my view Cyril Silver can only provide information of the two products and is therefore not a representative of ABC bank and her name cannot appear on the register of the representatives.
1.3 Yes, all advice from Nishal must be signed off by the supervisor. Nishal’s
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The payment system in this scenario is the National Payment System. The goal is to clear payments between banks

4.2. The four advantages of the National Payment System are: Increased participation – This system has been build up over the last few decades and provides a cost-effective service to the banking industry. Real-time monitoring of risks – This means that any transaction processed over the account will be reflected as soon as they take place. The new system does not only entails clearing systems but also encompasses the total payment process. Early detection of systemic crises – The system indicators will alert the Reserve Bank to any bank experiencing problems in meeting its commitments. The system provides a cost effective service to banking industry. Real-time customer-to-customer payment – To establish a very wide network of payment services and products
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