A system that allows the recipient to receive money into their account a few seconds after a payment has started will come into place this year said Norges Bank.
Norges Bank has, since 2016, collaborated with the banking industry to improve the infrastructure for so-called real-time payments in Norway.
‘’An improved infrastructure for such payments is planned by the end of this year’’ said Deputy Governor, Jan Nicolaisen.
“Norges Bank says that the banks will offer services that enable private individuals and enterprises to exploit the opportunities provided by the new infrastructure” he added.
Need for improvement
In the report, Financial Infrastructure 2019, which was presented on Thursday, the central bank stated that there is a need for improvements in the financial infrastructure so to maintain the efficiency of the payment system.
The main elements of the new and improved system will be that the payee’s bank will credit the payee’s account a few seconds after the payment is initiated.
In addition, the infrastructure will be available to customers in all banks, 24 hours a day and all year round. It will be able to be used for payments between customers, from a customer to a company, and from company to company.
The system will facilitate the exchange of information between the payer and the recipient. To prevent credit risks from occurring, each bank will put money in a separate account at Norges Bank.
Examination of digital central bank money
At the same time, Norges Bank is now investigating whether digital central bank money in the future can secure the same confidence from the monetary system and efficiency from the payment system
as cash does today.
‘’Cash is still an important means of payment, and this are part of the total preparedness for failure of the payment system’’ the report said.
There are currently no electronic emergency solutions that are sufficiently independent of the ordinary payment system.
In the report, Norges Bank also raised the subject of increasing risk of cyber attacks against central ICT systems and pointed to the need for effective, electronic preparedness for the payment system to function after an attack.
‘’Norges Bank will invite the industry, Finanstilsynet and other relevant authorities to dialogue as a basis for assessing whether a standardised framework for testing cyber security in the payment system in Norway should be introduced’’ said Nicolaisen.
The goal is to improve security and promote financial stability.
© NTB Scanpix / #Norway Today