Faster Payments Scheme Limpited (FPSL) has increased the limit on its real-time payments service from £100k to £250k, effective today.
The increase, the first since 2010, was made to meet demand from large corporate clients; the scheme’s 11 participant banks and building societies are expected to raise their individual limits over the coming months.
Made in order to satisfy demand from large corporate clients, the limit increase was made possible by a recent change to the way banks and building societies settle payments with one another. The ‘pre-funding’ settlement process, introduced in September of this year, eliminates shared risk along with any implicit obligation for smaller participants to underwrite a share of larger participants’ transactions.
Craig Tillotson, chief executive of Faster Payments, said: “We believe that increasing the maximum payment value to £250,000 will continue to broaden the appeal of the service, helping to meet all the service users’ needs and opening up opportunities for business to provide new services to their customers enabled by our higher value 24/7 service.”
A further review of the scheme limit is planned for 2016.
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