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Interoperable Credit Transfer Framework (ICTF)

Release Date: 16 Mar 2018

Bank Negara Malaysia (“the Bank”) has today issued the Interoperable Credit Transfer Framework (ICTF), which has taken into account feedback received during the public consultation period on the Exposure Draft released on 7 December 2017.

The ICTF seeks to foster an efficient, competitive and innovative payment landscape in Malaysia by enabling the interoperability of credit transfer services and promoting collaborative competition (co-opetition) between banks and non-bank electronic money (e-money) issuers through fair and open access to shared payment infrastructure.

Credit transfer services, particularly when offered through the use of mobile devices, have the potential to complement debit cards as a cost-effective and convenient alternative to cash and cheques. In this regard, the growing penetration of smartphones and the availability of various mobile payment solutions offered by banking institutions and non-bank e-money issuers have the potential to accelerate the migration to electronic payments (e-payments) and advance financial inclusion by enabling every adult in Malaysia to make or receive payments electronically.

The ICTF outlines requirements aimed at-

  1. enabling interoperability of credit transfer services leveraging on shared payment infrastructure to expand network reach and avoid market fragmentation;
  2. ensuring fair and open access to shared payment infrastructure to promote a level playing field and foster collaboration at the infrastructure level;
  3. facilitating effective oversight of shared payment infrastructure to maintain the safety and integrity of credit transfer systems and to ensure the integrity and stability of the financial system;
  4. encouraging innovation through the establishment of innovation sandbox facilities and publication of Application Programming Interfaces (APIs) by an operator of a shared payment infrastructure;
  5. establishing risk management measures proportionate to the nature, scale and complexity of the activities and risk profile of the respective providers of credit transfer services; and
  6. strengthening customer protection and fostering confidence in the use of credit transfer services.

The Bank’s policy document and response to the key feedback received from the public consultation can be accessed via the links below.

Policy Document on the Interoperable Credit Transfer Framework
Response to Feedback Received

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