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Introduction to TCIB

An Introduction to Low Value Credit Transfers Cleared on an Immediate Basis (TCIB) for prospective new participants

SADC Payment Project

  • Project driven under the SADC Finance and Investment Protocol
  • Governed at the Committee of Central Bank Governors
  • SADC Banking Association mandated to develop the various payment schemes and interface with the central bank settlement systems
  • In order to increase financial inclusion in the region and the fact that regulators permit non-banks to transact cross-border all market players are eligible for participation in the TSIB scheme

The Operating Model

  • Includes all eligible participants i.e. both banks and non-banks
  • Uses existing intra-country settlement mechanisms
  • Reuses existing infrastructure where possible
  • Takes into consideration regulatory requirements
  • The model is based on a central clearing and settlement operator switch
  • Banks and non-banks can clear credit transfers to each other
  • Non-banks need a partner settlement bank for their settlement of daily clearing obligations

SADC TCIB Regulatory Eco System

Participants to adere to the AML, KYC, BoP reporting requirements etc. of own regulator.
These have been harmonised as far as possible

SADC Low Value Credit Transfer Cleared on an immediate basis via RCSO operating model

Bank can have various roles;

  • Send own payments,
  • Manage Trust Account,
  • Settlement Bank Nostro
  • Settlement Bank for non-SADC-RGTS currencies,
  • FX provider

– net paying settlement bank settle via correspondent banking

The TCIB Participants

Payment Scheme Entities & Roles

Aligned Payment Scheme Entities & Roles

How It Works

  • The next images show the high level flows
  • The flows cover all SADC currencies as well as the USD
  • They allow both banks and non-banks to transact with each other
  • They comply with Central Bank settlement where available

High Level Flows

Today Bank High Value Transfers are made via the SADC-RTGS

Sending of payments and clearing

High Level

Message data set complies with FATF requirements

The tranfer is made between the 2 participants and are
cleared and settled immediately by the RTGS

TCIB Clearing of Tranfers - Bank Transfers

Sending of payments and clearing

High Level

Message data set complies with FATF requirements

The tranfer is made between the 2 participants and are cleared and settled immediately by the RTGS

Clearing of Tranfers - Non-Bank Tranfers

Sending of payments and clearing

High Level

Message data set complies with FATF requirements

The tranfer is made between the 2 participants and are cleared immediately by the RCSO. Either non-bank to bank or bank to non-bank as well as bank to bank.

Pre-Settlement of Daily Clearing Obligations

Step 2

Daily the RCSO will notify the two participants and their settlement banks of the net obligations to be settled.

Settlement via Central Bank RTGS

Step 3

The central bank will debit the net paying bank and credit the receiving bank in order to ensure timely settlement.

Settlement via Correspondent Banking

Step 3

Transfer in Non-SADC-RTGS Currencies

Aligned Payment Scheme Entities & Roles

All participants must be able to send or receive tranfers using the ISO 20022 standard to ensure compliance with FATF and other regulatory needs

Message usage guides are housed on SWIFT.com/Mystandards

Connectivity

All participants must decide on method of connectivity and direct and hubs must formalise network protocol standard with RCSO

One connection to RCSO can provide link to all participants that a participants wishes to do business with.

SADC Payment Scheme Documents

  • Beige Book-operating models, rule books, other information and background
  • Linked associated documents covering specific agreements, procedures etc
  • Message schemes and rules as well as message examples
  • Operator documents and agreements covering its services

What to do next?

  • Advise your regulator of your intent to join the scheme
  • Complete the TCIB scheme application form and send it to the Bankserv Africa (RTSO)
  • Documentation on how to on-board will be forwarded to your institution

For more information on how to become a participant,
please contact Ms Litha Ngwane at LithaN@Bankservafrica.com

https://www.bankservafrica.com/website/services/transactions-cleared-on-an-immediate-basis


https://www.sadcbankers.org/subcommittees/PaySystem/projects/Pages/default.aspx

Join as a Participant

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secretariat@sadcbanking.org

+27 (0)11 645 6718

32 Princess of Wales Terrance,
Parktown, Johannesburg

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