sys de paiement

TIPS

TIPS (Target Instant Payment Settlement) is the Eurosystem real-time gross settlement service in central bank money for instant payments. TIPS went live on 30 November 2018.

TIPS enables the final and irrevocable interbank settlement of instant payments in central bank money at any time of day and on any day of the year, in the legal framework of TARGET2. TIPS participants open a TIPS Dedicated Cash Account (DCA), which is linked to a payment account in TARGET2, allowing for liquidity management in TIPS. Balances on TIPS DCA at the end of the TARGET2 day are included in the calculation of the minimum reserves. However, these funds are not blocked; they remain available on the TIPS DCA to settle instant payments.

Payments settled in this way are irrevocable and unconditional: they are considered as final. The settlement finality is important because it contributes to one of the central bank’s objectives: the maintenance of financial stability.

In order to increase the reach for instant payments in euros (SCT Inst), the Governing Council decided in July 2020 to implement two measures in TIPS. Firstly, Payment Service Providers (PSPs) which are reachable in TARGET2 and which have adhered to the SEPA Instant Credit Transfer (SCT Inst) scheme should become reachable in TIPS by November 2021. Secondly, all Automated Clearing Houses (ACHs) offering instant payment services should migrate their technical accounts from TARGET2 to TIPS.

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