When such systems are designed, it is critical that they enhance the efficiency with which monetary policy is conducted, the soundness of financial institutions, and the functioning of the economy as a whole. The growing complexity and diversity of financial markets and financial instruments, globalisation and integration of markets, and strong growth in private capital flows call for the strengthening of such links.
The payment system, therefore, represents the interaction between transactions in the real economy, such as purchase of goods and services, including financial instruments and financial transactions, and this interaction gives rise to payment and settlement obligations. Banking institutions play a role of payment intermediaries because they hold the settlement accounts of those engaged in economic activity.