KUALA LUMPUR: Bank Negara Malaysia (BNM) has launched RENTAS+, an enhancement to Real-time Electronic Transfer of Funds and Securities to enable continuous interbank funds transfer and settlement 24/7, 365 days a year.
“The expansion of RENTAS’ settlement window enables financial institutions to better manage credit and settlement risks arising from rapidly growing retail instant payments through continuous settlement of retail payment transactions,“ BNM said in a statement today.
The central bank said before RENTAS+, retail payments were settled twice a day on a deferred net basis that carries inherent credit and settlement risk, as credit exposures between banks are only settled twice daily.
“These risks are largely eliminated with RENTAS+, as DuitNow transactions (encompassing fund transfers, QR payments, and e-commerce payments) are now settled on a gross basis, with Payments Network Malaysia (PayNet) transmitting DuitNow transactions to RENTAS+ for settlement after each customer transaction has completed,“ it said.
To facilitate round-the-clock settlement, BNM also introduced a 24/7 automatic liquidity facility using repurchase agreements (repo) and sell and buy back agreements (SBBA).
The central bank highlighted that since 2024, daily retail payment transaction volume and value have grown by 49 per cent and 22 per cent, respectively.
BNM Governor Datuk Seri Abdul Rasheed Ghaffour said RENTAS+ strengthens the resilience of Malaysia’s financial market infrastructure, while providing a secure, scalable, and flexible settlement platform for future innovations.
“It also highlights BNM’s commitment to positioning RENTAS as a catalyst and enabler for innovation in financial markets,“ he said. – Bernama