The Bank of Canada has assigned Interac e-Transfer as a prominent payment system under the Payment Clearing and Settlement Act, effective immediately.
This decision by the bank’s governor Tiff Macklem means that bank oversight will ensure Interac e-Transfer remains a safe, viable and effective payment method, as it is required to adhere to the bank’s risk management standards.
The Bank of Canada has a formal responsibility under the act to monitor the evolution of new and existing payment systems to determine whether they require oversight in their potential to cause systemic or payment system risks.
Operated by Interac Corp, Interac e-Transfer facilitated over 486 million transactions totalling $169 billion in the 2019 fiscal year; therefore, disruption or failure in the system carries significant negative consequences.
Interac e-Transfer is the second prominent payment system under bank oversight, as well as five systemically important financial market infrastructures.
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