What is the main goal of the BoE in renewing its RTGS system?

The primary goal of the Bank of England (BoE) in renewing its Real-Time Gross Settlement (RTGS) system is to develop a future-proof system for enhanced resilience. This initiative is crucial for ensuring that the payment infrastructure can adapt to the evolving needs of the financial system, maintain operational resilience, and incorporate advancements in technology.

By focusing on a future-proof system, the BoE aims to ensure that the RTGS system can withstand disruptions, reduce systemic risks, and facilitate smoother transactions even during periods of stress. This resilience is essential in a rapidly changing financial landscape, where both the frequency and complexity of transactions are increasing. Additionally, a well-designed RTGS system can support innovation and cater to new payment methods and technologies as they emerge.

In contrast, increasing transaction fees or reducing the number of direct participants would not align with the goal of improving the efficiency and accessibility of payment systems. Eliminating the use of messaging standards would undermine the clarity and consistency needed for effective communication within payment transactions, which is contrary to the objectives of enhancing operational resilience and support for a wide range of participants.