Payment System Governance

Objectives and Role of the Bank of Thailand (BOT)
In overseeing payment systems

The payment system is important as a tool that lubricates the country's economic activities to be continuous and stable. It supports and supports financial transactions of financial institutions. The government, the private sector, and the general public can operate conveniently, quickly and efficiently. It helps to promote economic mobility and maintain the country's financial stability. (Financial stability)


The payment system is important as a tool that lubricates the country's economic activities. Continuous and stable

The BOT is responsible for supervising payment system service providers in accordance with the Payment Systems Act B.E. 2560 (<>). Payment Systems) The Payment Systems Committee (KORC) determines the policy on payment systems that the BOT supervises and the clearing system between financial institutions, as well as monitors the BOT's operations in establishing or supporting the establishment of payment systems. It's not. The BOT aims to supervise the payment system to ensure its security and efficiency. Reduce risks in various areas in accordance with international standards. This includes encouraging competition between service providers, leading to the stability of the payment system and the financial system as a whole.



Payment System Governance in Thailand


The BOT has created the "Oversight Framework of Payment Systems in Thailand" to guide the BOT's implementation of payment system governance. as follows

  • 1.

    Supervision under the Payment Systems Act

Governance under the Payment Systems Act is divided into 3 main areas as follows:

1.1 Important payment systems include Bank of Thailand Automated High-value Transfer Network (BAHTNET) and Imaged Cheque Clearing and Archive System (ICAS), which are systems established and operated by the BOT.

1.2 The payment systems under supervision are (1) Inter-institution Fund Transfer System, (2) Payment Card Network, and (3) Settlement System.

1.3 Regulated payment services include (1) providing credit cards, debit cards or ATM cards, (2) providing electronic money services, (3) providing electronic payment services on behalf of sellers of goods or service providers or creditors, (4) providing electronic money transfer services, and (5) providing other payment services that may affect the financial system or public interest.


The Payment Systems Act There are provisions that are important to the stability of the payment system, with protection for transfers, balances or clearings that have been processed through the payment system that are important before the time the court receives a request for rehabilitation or an order to protect the assets of the member. To be completely irrevocable, reversible, modified, stopped or suspended (Payment finality) to prevent systemic risk.

5 principles of


  • Financial Position
  • Corporate Governance
  • Risk Management and Safety
  • User Protection
  • Promoting efficiency and competitiveness

The Payment Systems Act authorizes the BOT to announce the rules for the supervision of payment systems in accordance with the framework of 5 regulatory principles: (1) financial position, (2) good governance, (3) risk management and safety, (4) protection of service users, and (5) promotion of efficiency and competitiveness. In addition, the BOT can inspect and request relevant information, as well as order to correct the financial or operational status that may cause damage to the public, or violate or neglect to comply with the criteria announced by the BOT.





  • 2.

    Supervision in accordance with international standards

Payment Systems Committee PFMI has approved the criteria for grouping payment systems by priority level, as well as establishing a framework for the supervision of payment systems in each group to ensure compliance with the Principles for Financial Market Infrastructures (PFMI) issued by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) in April 2555.

2.1 A payment system that is important for the stability of the country's financial system. The Systemically Important Payment System (SIPS) is the BAHTNET system operated by the BOT because it is the financial market infrastructure (FMI) of the country. It supports high-value remittance transactions between financial institutions and is used for balance money market transactions and other payment systems. In the event that a system interruption may affect the members of the system on a large scale (systemic risk) or the stability and stability of the payment system, the SIPS system must be supervised to comply with the PFMI international standards applicable to all payment systems (18 in total).


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