pc
nid 92629
May 20, 2026
rghosh@vixio.com
South Africa
Reserve Bank of South Africa
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2055 charsSouth Africa's Reserve Bank Prudential Authority Intends to Issue Exemption Notice for Specified Payment Activities
On May 20, 2026, the Prudential Authority (PA), a division of the South African Reserve Bank (SARB), published Prudential Communication 10 of 2026 communicating its intention to issue an Exemption Notice to exempt specified payment activities from the definition of the business of bank. The PA simultaneously endorsed the SARB in issuing a supporting regulatory framework, the Authorisation Framework, and invited comments on both the proposed Exemption Notice and Authorisation Framework.
The Exemption Notice aims to clarify which payment activities fall outside the regulatory scope of banking business, thereby providing regulatory clarity for entities engaged in specified payment services. This development is significant as it establishes a clearer regulatory perimeter for payment service providers operating in South Africa, distinguishing between activities that require banking licenses and those that do not. The Authorisation Framework will set out the conditions and requirements for entities seeking to operate under the exemption. This initiative affects payment service providers, fintech companies, and other entities offering payment activities that may currently fall within ambiguous regulatory territory. The exemption framework is designed to facilitate innovation in the payments sector while maintaining prudential oversight of systemic risks.
The PA invites stakeholders to submit comments on the Draft Payment Activities Exemption Notice and the Draft Authorisation Framework. Supporting documentation includes a statement of need impact assessment outlining the rationale for the exemption framework. Interested parties should use the provided exemption notice comment template when submitting responses. The consultation period and response deadline have not been specified in the available materials.
REFERENCES:
South African Reserve Bank. (2026, May 20). Prudential Communication 10 of 2026 - PA's intention to issue an exemption notice to exempt specified payment activities. Retrieved from https://www.resbank.co.za/
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1811 charsSouth Africa's Prudential Authority Intends to Issue Exemption Notice for Specified Payment Activities
On May 20, 2026, the Prudential Authority (PA), a division of the South African Reserve Bank (SARB), published Prudential Communication 10 of 2026 communicating its intention to issue an Exemption Notice to exempt specified payment activities from the definition of the business of bank.
The PA simultaneously endorsed the SARB in issuing a supporting regulatory framework, the Authorisation Framework, and invited comments on both the proposed Exemption Notice and Authorisation Framework. The Exemption Notice aims to clarify which payment activities fall outside the regulatory scope of banking business, thereby providing regulatory clarity for entities engaged in specified payment services.
This development is significant as it establishes a clearer regulatory perimeter for payment service providers operating in South Africa, distinguishing between activities that require banking licenses and those that do not. The Authorisation Framework will set out the conditions and requirements for entities seeking to operate under the exemption. This initiative affects payment service providers, fintech companies, and other entities offering payment activities that may currently fall within ambiguous regulatory territory.
The exemption framework is designed to facilitate innovation in the payments sector while maintaining prudential oversight of systemic risks. The PA invites stakeholders to submit comments on the Draft Payment Activities Exemption Notice and the Draft Authorisation Framework. Supporting documentation includes a statement of need impact assessment outlining the rationale for the exemption framework. Interested parties should respond to PA-SARB-ExemptionNotice@resbank.co.za, for the attention of the PA Policy Division and National Payment System Department, by June 15, 2026.