Mpho Mofokeng, head of transact at RMB.

RMB, an African corporate and investment bank, recently launched the Transactions Cleared on an Immediate Basis (TCIB) payment solution for cross-border transactions in the Common Monetary Area (CMA), which consists of South Africa, Namibia, Lesotho, and Eswatini.

TCIB allows RMB clients to make near real-time cross-border payments between RMB accounts across CMA countries, available through host-to-host integration and the RMB online banking platform.

Key benefits include real-time processing, enhanced security, and 24/7 availability, enabling payments to be processed outside of traditional banking hours, including evenings, weekends, and public holidays, according to the RMB.

This solution was introduced after the South African Reserve Bank's (SARB) directive that EFTs, debit and credit card payments carried out between CMA countries be deemed cross-border payments.

The SARB announced this earlier in the year: "As of 30 September 2024, low-value EFTs, debit and credit payments made between CMA countries, namely Eswatini, Lesotho, Namibia and South Africa, will be treated as cross-border transactions and subject to greater due diligence requirements."

It added: "Previously, these low-value retail payments were treated as domestic payments, with the four CMA countries and their participating banks processing the transactions via South Africa’s domestic retail payment system. This provided a low-cost, effective and efficient payment service to their clients.

"However, to enhance compliance with international standards, our payment system and processes must be regularised. Doing so will, along with other benefits, prevent criminals from having easy access to EFT payments to launder funds and ensure this misuse can be identified more effectively when it occurs."

According to the bank, this measure is part of South Africa's efforts to fulfill key Financial Action Task Force recommendations to tighten anti-money laundering, counter-terrorism funding, and combat the proliferation finance system.

Since then, banks have launched suites of products to serve their consumers in the CMA region.

RMB launched yesterday its payment solutions for South Africa and the CMA countries.

These include Urgent Pay, a service available through the bank's API channel that provides corporates with access to real-time payments powered by PayShap (and soon additional real-time payment rails), according to the bank.

RMB went on to state that this service is available 24/7 and can handle a range of corporate payment demands, such as salary disbursements, claims payouts, refunds, and supplier payments.

Furthermore, the bank stated that in recognition of the importance of the entire payment value chain, RMB has integrated account verification services, statements, and real-time notifications into its API offering, providing clients with a "comprehensive solution to create efficiencies across pre- and post-payment operations."

“With these solutions, RMB is not only enhancing the efficiency of our clients' payment systems but also redefining what’s possible in corporate banking by working towards creating a seamless, integrated experience,” said Mpho Mofokeng, head of transact at RMB.