Revised oversight framework for retail payment systems

February 2016

Introduction

The oversight of payment systems is an essential function of central banks. It aims to ensure the smooth functioning of payment systems, which is an important precondition for the central banks’ ability to contribute to financial stability, to implement monetary policy and to maintain public confidence in the currency.

The oversight function of the Eurosystem1 is recognised in the Treaty on the Functioning of the European Union and the Statute of the European System of Central Banks (ESCB) and of the European Central Bank (ECB). Article 127(2) of the Treaty and Article 3.1 of the Statute state that “the basic tasks to be carried out through the ESCB shall be […] to promote the smooth operation of payment systems.”

The objectives and scope of the oversight function are defined in the Eurosystem oversight policy framework2.

With regard to the objectives, the Eurosystem’s task of promoting the smooth operation of payment systems consists in ensuring their safety
and efficiency.

With regard to the scope, the framework specifies the entities and
instruments that form the payment and settlement landscape of the euro area; retail payment systems (RPSs) are an integral part of this landscape and thus fall within the scope of oversight.

Source: ECB publication