Payment systems is a importance part of business structure of the country that should be continuous and secure functioning of the country’s economic activities. It so important for the functioning of economic activities and maintaining the financial stability of the country.
The Bank of Thailand (BOT) is responsible for the oversight of operators/service providers of the payment systems under the Payment Systems Act B.E. 2560 (2017) (Payment Systems Act). The Payment Systems Committee (PSC) is empowered to formulate policies relating to the payment systems under the BOT’s purview and interbank clearing systems, including oversee the BOT’s operations with respect to the establishment or supporting of the establishment of payment systems.
By virtue of Section 7, Section 8 (6), Section 8 (10), Section 28/12 and Section 44 of the Bank of Thailand Act B.E. 2485 (1942) and additional amendments, the BOT carries on tasks, by which the PSC is empowered to formulate policies relating to the payment systems under the BOT’s purview and interbank clearing systems, in order to maintain payment systems stability. In addition, by virtue of Section 7 and Section 24 of the Payment Systems Act, the BOT has the responsibilities to supervise and oversee the Highly Important Payment Systems, the Designated Payment Systems, and the Designated Payment Services; and is empowered to issue notifications prescribing regulations on supervision of the payment systems to ensure stability, safety, and efficiency. The Payment Systems Act empowers the BOT to issue notifications prescribing regulations on supervision of the payment systems by using a supervisory framework consisting of 5 areas approved by the PSC, in order to adopt as the approach for the supervision and oversight on 3 groups of payment systems, which are summarized as follows: (1) Financial status: to ensure that operators/service providers have financial status that is stable and sufficient to continue providing services as a going concern under both normal and emergency conditions (2) Governance: to ensure that the management and internal control are in accordance with good governance principles, including directors and executives have proper qualifications (3) Risk management and security: to ensure that there are risk management relating to the payment systems such as systemic risk, settlement risk, and operational risk; including, the security of IT systems is maintained to ensure security, integrity, and availability. (4) System user/consumer protection: to ensure that operators/service providers adequately disclose information related to services to users; such as fee being charged to users, safely protect user data privacy, and properly handle complaints, including the protection of users’ money received in advance (float). (5) Promotion of efficiency and competitiveness: to promote level of playing field for both domestic and oversea operators/service providers, to foster competitiveness, and to promote new innovations; which will increase efficiency and uplift the payment systems and payment services in Thailand. In addition, the BOT has the power to conduct examination, to obtain relevant information, and to order for rectification of financial conditions or operations that may cause damage to public, violate or omit to comply with relevant regulations prescribed by the BOT. Moreover, the BOT will regularly analyze and monitor any payment systems that fall into the payment systems or payment services which shall obtain a license or register.