Scheme rules play a critical role in determining how the payments system functions. This generic rulebook provides a structure for effective payment scheme rules.
Key Components of Scheme Rules:
- Governance articulates relevant governing bodies and regulations; describes the scheme governance model, rule amendment processes and specifications
- Entities introduces key scheme roles and what entities can serve in those roles; defines eligibility criteria and application and suspension/termination/withdrawal processes for each role
- Roles and Responsibilities describes scheme roles and participation classes, including permissions and requirements for each role
- Operating Guidelines provides specifications and technical details that support various aspects of the scheme
Rulebook Design Trends:
- Thin Rulebooks and Variable Clauses: Thin rule books articulate only the necessary rules for the scheme. Variable clauses allow for deviations from the rules to lower the operational and management burden of the scheme.
- Settlement: Approaches to settlement are often determined in coordination with the central bank. Settlement rules, including funding and settlement windows, often reflect capabilities (or limitations) of other payments systems used for settlement (e.g. RTGS).
- Pricing and Fees: Real-time retail payments benefit from low inter-participant pricing, to perpetuate low end user pricing. Evidence shows this is likely to support the system reaching scale.
Well-defined scheme rules are key to fostering trust, competition, and seamless IPS adoption.