In the broadest sense of the term,
payment system is a set of systems enabling transfer and circulation of
funds. To perform its role successfully, the payment system must fulfill three
prerequisites. One is that the financial assets should be kept in payment
transaction channels for as short a time as possible. The second involves
reliability and implies secure performance of transactions and uninterrupted
availability, while the last, but not the least, is the affordability of
the prices of these services.
Considering that the payment system strongly influences the velocity of flows
in the economy, overall costs and liquidity of participants, and that it serves
as a monetary policy transmission channel (disruptions in the payment system
could compromise public confidence in the financial system as a whole), it comes
naturally that the central bank should be the one highly interested in ensuring
its efficient functioning.
In fact, one of the key legally-mandated functions of the National Bank of
Serbia is to regulate, oversee and promote smooth operation of the national