CHAPS
CHAPS[edit | edit source]
CHAPS (Clearing House Automated Payment System) is a real-time gross settlement (RTGS) system used for the secure and efficient transfer of high-value payments in the United Kingdom. It is operated by the Bank of England and provides a crucial infrastructure for the financial industry.
History[edit | edit source]
CHAPS was established in 1984 as a replacement for the previous paper-based system of clearing and settling high-value payments. The introduction of CHAPS revolutionized the payment process by enabling same-day settlement and reducing the risk associated with large-value transactions.
Operation[edit | edit source]
CHAPS operates on a real-time basis, allowing for immediate transfer of funds between participating banks and financial institutions. It processes high-value payments in sterling, ensuring that transactions are settled quickly and securely. The system is available for use on business days from 7:00 am to 6:00 pm.
Benefits[edit | edit source]
The use of CHAPS offers several benefits to its participants:
1. Speed and Efficiency: CHAPS enables same-day settlement, ensuring that high-value payments are processed quickly and efficiently.
2. Security: The system provides a secure platform for the transfer of funds, reducing the risk of fraud and unauthorized access.
3. Liquidity Management: CHAPS allows banks to manage their liquidity effectively by providing real-time settlement of high-value transactions.
4. Risk Reduction: By using CHAPS, participants can mitigate counterparty risk and reduce exposure to potential losses.
Categories[edit | edit source]
CHAPS falls under the following categories:
Templates[edit | edit source]
The following templates are commonly used in articles related to CHAPS:
1. {{ Infobox payment system}} : This template provides an infobox to summarize key information about CHAPS, such as its operator, launch date, and key features.
2. {{ Cite web}} : This template is used to provide citations for references and sources used in the article.
3. {{ Cleanup}} : This template is used to flag sections of the article that require cleanup or improvement.
4. {{ Stub}} : This template is used to indicate that the article is a stub and requires expansion.
See Also[edit | edit source]
References[edit | edit source]
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