New service in RIX for instant payments
The Riksbank will complement RIX with a new service, RIX-INST, enabling payments to be settled between banks in real time, round-the-clock, all year round (24/7/365), in central bank money. The Riksbank has concluded an agreement with the Eurosystem on using the TARGET Instant Payment Settlement (TIPS) platform that enables this.
Payments in RIX 24/7/365
Currently, RIX mostly handles large-scale payments between banks on weekdays between 07.00 and 18.00 hours. By connecting the TIPS platform to RIX, it will also be possible to implement many smaller payments round-the-clock. Once the new service becomes operational, RIX will consists of two services, the current RIX and RIX-INST.
Households and companies already use the mobile app Swish to make instant payments. But Swish payments are made via banks on a private technical platform and not via the Riksbank’s RIX payment system. The advantage of RIX-INST is that the Riksbank is responsible for settlement. Central bank money is the safest way for banks and other financial institutions to make payments as the Swedish state stands surety for the value of the money. The current division of work between the public and the private sector will stay the same: the private sector offers payment services to its customers and the Riksbank is responsible for settlement in central bank money.
Project to connect TIPS to RIX
In order to connect the TIPS platform to RIX from a technical point of view, the Riksbank is running a project involving the Riksbank, the participants in RIX (banks, clearing organisations and the Swedish National Debt Office) and the ECB.
The Riksbank has also had agreement negotiations with the ECB and the Eurosystem. These have focused in particular on the security protection requirements imposed by Swedish legislation.
The Riksbank will need to make some adaptations in RIX and in the collateral management system. The Riksbank will also have to start using a new communication solution in relation to the TIPS platform, which is specially designed for this type of very rapid messaging.
As a new settlement service for instant payments will be a part of RIX, the terms and conditions for RIX and monetary policy instruments will need to be adapted.
The aim is to implement the TIPS platform in RIX in 2022.