Page 56 - Invited Paper Session (IPS) - Volume 2

IPS179 Wian B.
of data be investigated in order to validate existing labour market survey
outcomes.
The objective of this paper is therefore to highlight the importance of
interbank EFT transactions from the NPS as an alternative source of
information for research on selected labour market dimensions, and more
generally to augment the economic statistics compilation process within ESD.
It will attempt to achieve this objective by addressing the key methodological
considerations associated with constructing a chain-linked monthly salary
index using retail interbank EFT data for the period July 2017 until October
2018.

2. National Payment System in South Africa
a) Institutional Context
The NPS, which is legally governed by Section 10(1)(c)(i) of the amended
South African Reserve Bank Act No. 90 of 1989 (SARB Act) and the National
Payment System Act No. 78 of 1998 (NPS Act), provides an efficient process
for parties wanting to engage in a transaction to exchange value in an efficient
manner. The system encapsulates the overall payment process, and all
dimensions associated with effecting a payment transaction (including the
relevant systems, procedures, and agreements) are integrated into the NPS.
The NPS framework can be explained in terms of various interlinked networks
and systems (SARB 2008):
1. Customer networks. Customer networks typically include networks
established by large business customers of commercial banks, which
1
enables them to participate in the payment system, and to offer
payment services to clients.
2. Payment networks. Payment networks consist of system and
communication solutions implemented by commercial banks to
facilitate payments for their clients. This would include automated
teller machines (ATMs), internet banking, and payment instruments
such as EFTs, debit orders and credit cards.
3. Clearing network. Bank as well as non-bank participants are allowed in
the clearing network. Agents known as payment clearing house (PCH)
system operators (SOs) or clearing houses also participate in the
clearing network and is legislated to clear on behalf of two or more
participants in the settlement system. The clearing of retail interbank
2
payments in South Africa is done by BankservAfrica, which is owned by
South African clearing and settlement banks.

1 This includes major supermarket chains and public utilities.
2 Retail payments include cheques, credit and debit card transactions, online payments and
automated teller machine transactions (SARB 2008).
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