SARB Issues Draft NPS Directive and Exemption Notice under Banks Act

Posted 19 November 2025 Written by Acts Online
Category Financial Sector

Brought to you by SA Legal Academy: The South African Reserve Bank (SARB) has published a draft directive and a draft exemption notice under the Banks Act, No. 94 of 1990 regarding national payment system (NPS) related activities.

In terms of the proposed regulatory framework, the draft directive will prescribe the requirements to be met by any person—including both banks and non-bank entities—wishing to offer or conduct specific payment activities. This includes activities offered or conducted within a “closed-loop payment system”.

The draft exemption notice seeks to deem specific payment activities as not constituting the “business of a bank”, subject to the fulfillment of certain conditions. The SARB has stated that the overarching objective of these proposals is to promote competition, innovation, and financial inclusion within the national payment system.

At the time of publication, the SARB had not yet issued an official call for public comments or established a deadline for submissions. Professionals and entities involved in the payments space should monitor for the formal notice of comment period.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; impact channelled through firm-level compliance and advisory roles for financial services clients.
  • For your business: Firms operating internal or proprietary payment systems must audit their operations against the draft directive to determine if they will be classified as a “closed-loop payment system” requiring specific compliance.
  • For your clients: Fintech and retail clients currently conducting payment activities may need to apply for or align with the conditions of the draft exemption notice to ensure their activities are not legally classified as the “business of a bank” under the Banks Act, No. 94 of 1990.

Originally published at https://legalacademy.co.za/news/read/banks-sarb-publishes-draft-nps-directive-exemption-notice

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