Consumers and businesses benefit from innovation in the payment system when the right precautions are in place.
The Bank of Canada’s supervisory framework complements work led by Payments Canada to modernize Canada’s core payment systems.
A new payment system, Real-Time Rail (RTR), is an important part of this modernization. Owned and operated by Payments Canada, the RTR enables Canadian consumers and businesses to exchange funds in real time.
The RTR is designated as a prominent payment system under the Payment Clearing and Settlement Act and is subject to oversight by the Bank of Canada. This oversight of the RTR is distinct from the Bank’s supervision of payment service providers (PSPs) under the Retail Payment Activities Act (RPAA).
PSPs that wish to connect to the RTR must register with the Bank before they can apply to become a member of Payments Canada. PSPs supervised under the RPAA may have access to the RTR system if they:
- are eligible for membership with Payments Canada
- meet specific participation requirements
- are eligible to either have a Bank of Canada settlement account (if they will settle their own RTR payments) or have an agreement with a settlement agent (who will settle payments for them)
Within the RTR system, PSPs can:
- exchange payments in real time
- settle and clear their own transactions, or
- rely on other participants to provide settlement services
Once registered, PSPs that wish to settle transactions will be required to apply to open a settlement account with the Bank.
Learn more about:
- the Bank of Canada’s Real-Time Rail (RTR) settlement account access policy
- the steps for applying for an RTR settlement account