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Oversight over the payment systems is explicitly stated as one of the primary objects of Bank Negara Malaysia (BNM) in the Central Bank of Malaysia Act 2009. The oversight responsibilities however, are drawn from the Payment Systems Act 2003 (PSA). Pursuant to the PSA, SIPS are designated as Designated Payment Systems (DPS) to enable BNM to exercise its oversight powers to promote financial stability.
BNM's oversight objective on SIPS is to ensure the safety, reliability and efficiency of SIPS, particularly to contain systemic risks which may arise from disruptions in its operations. BNM's oversight activities are directed towards mitigating risks and ensuring that the operation of SIPS is in accordance with the international standards and requirements set by BNM.
