SARB 2025 Draft Rules: In order to improve the system and secure digital payments for non-bank entities like mobile wallets and fintech platforms, two draft policy suggestions have been made public by the Bank of South Africa (SARB): the Banks Act’s Draft Payment Activities Exemption Notice and the National Payment System (NPS) Act’s Draft Directive on Specific Payment Activities.
These regulations seek to categorize and control the operations of non-bank organizations, including digital remittance platforms, peer-to-peer applications, and e-wallet services, many of which have historically functioned outside the purview of traditional banking regulation. South Africa is getting ready for significant changes to the way individuals and companies transfer funds. The current payment system will be enhanced by the South African Reserve Bank by being safer, more up-to-date, and more technologically capable.
The goal of these adjustments is to stay up with the rapidly expanding use of digital payments in daily life. Two new policy drafts that the Reserve Bank has introduced could have an impact on non-bank businesses that facilitate money transfers, such as digital wallet services. Usually a critical step, especially since numerous non-banking undertakings would abruptly be subject to the same controls as banks.
These companies are being encouraged by specialists to pay attention and consider the potential impacts of these changes. The improvements also contribute to a larger objective: facilitating a more seamless integration of South Africa’s economy with the global economy. However, the Reserve Bank is taking preliminary measures and soliciting input using existing legislation before everything is finalized.
Overview of SARB 2025 Draft Rules
| Regulatory Item | Key Impact |
| Payment Activities Exemption Notice | Allows non-bank firms to operate without full banking license if compliant |
| Directive on Specific Payment Acts | Imposes operational, reporting, and security standards on digital platforms |
| Capital & Licensing Requirements | Firms must prove financial strength and compliance |
| Client Fund Safeguards | Mandatory separation of customer funds from company accounts |
| AML & Fit-and-Proper Rules | Key persons must meet credibility, integrity, and risk management criteria |
SARB 2025 Draft Rules—New Changes
Extending the Meaning of “Payment Activities” Electronic money, speedier payments, money remittance, issuing payment instruments, and clearing and settlement services are among the more than a dozen operations that are now specifically mentioned. Therefore, non-bank organisations may be subject to SARB’s oversight if they provide services like e-wallets, peer-to-peer transfers, or even closed-loop ones like gift cards.
Temporary Exemptions for Non-Banks: By excluding payment activities, such as the creation of electronic currency and quicker payments, from being classified as “banking business” under the Banks Act, the Draft Exemption Notice provides some short-term relief. This allows some non-bank organisations to function without a full banking licence.
Prudential Standards for Payment Providers: When it comes to handling payments, the Draft Directive places additional obligations on both banks and non-banks. Governance, capital sufficiency, client fund protection, fit-and-proper individuals, and anti-money laundering protocols are a few of these prerequisites.
Now Regulated: The Reserve Bank has strengthened its oversight of closed-loop payment systems, which are incompatible with other networks. Even though they are exempt from other rules, providers of such systems, such as gift card programmes, will now need to register with SARB.
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The Significance of SARB 2025 Draft Rules
Consumer Safety and Trust: Essentially, reducing payment fraud and bolstering regulations over all digital and mobile payment methods in the mainstream should boost customer confidence.
Level Playing Field: By executing this alteration, non-banks will be represented by a common system, which can decrease arbitrage and deliver other showcase members reasonable competition.
Worldwide Alignment: The reason for this alteration is to bring South Africa’s installment biological system into compliance with worldwide rules for client-fund isolation, information assurance, and monetary wrongdoing avoidance.
Does Anyone Need to Listen?
One of the most significant changes is that businesses outside of the banking industry may now be impacted. The draft documents may affect numerous unexpected services because they employ very general phrases. For instance, unless exempted, a digital wallet’s collection and storage of funds in a user account may now be seen as a “banking activity.” Companies that provide services such as
- Electronic wallets
- Mobile money
- Peer-to-peer transfers
- Online payments
- The revised definitions of “payment activities” may include online payments.
Which Tasks Are Now Known as “Payment Tasks”?
According to the updated draft, the following are now considered payment activities:
| Activity | What It Means |
| Getting payment transactions | Helping suppliers process and receive payments. |
| Credit card payments | Transferring funds to an account connected to a card. |
| Digital currency | Digital platforms, such as mobile wallets, store value. |
| Putting payment transactions into effect | Using a service to transfer funds between accounts. |
| Quicker payments | Instantaneous payments at any moment. |
| Payment instrument issuance | Supplying users with payment tools, such as cards or applications. |
| Providing accounts for payments | Allowing customers to transfer or keep money for later use. |
| Payments to third parties | Receiving and transferring funds on behalf of others. |
| Remittance of funds | Sending money without requiring users to create accounts. |
| Settlement and Clearing | Processing and fulfilling instructions for payments. |
| Managing a payment plan | Establishing and overseeing payment mechanisms. |
| Registering for a payment schedule | being part of a payment network that is controlled. |
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Conclusion: SARB 2025 Draft Rules
It is anticipated that SARB would complete the regulatory framework by the end of 2025. We’re reviewing input from the tech and banking sectors. Timelines and further compliance updates could be released soon. Internal audits and legal examinations should start right away for impacted organizations. Action must be taken right away to prevent business disruptions when these proposed regulations go into effect. A significant step towards updating South Africa’s digital economy is indicated by the 2025 SARB payment regulations.
These regulations seek to strike a balance between innovation and protection in light of the explosive expansion of e-wallets and cashless payments. SARB intends to keep enhancing the system and might provide additional opportunities for input in the future. This reform may have an impact on South Africa’s digital financial industry. Planning ahead of time is best to avoid being caught off guard afterward.