Commentary on Sections Introduction Section 182: Interpretation: “inter-bank payment system”
406.Subsection (1) defines the use of the term “inter-bank payment system” in Part 5. It refers to arrangements that enable the transfer of money (including credit, see subsection (4)) between participant financial institutions (defined in subsection (3) as banks and building societies). It does not include internal bank systems or correspondent banking arrangements.
407.Subsection (2) provides that the fact that non-financial institutions participate in a payment system does not prevent it from being an inter-bank payment system for the purposes of this Part.
408.Subsection (5) ensures that the definition extends to payment systems operating wholly or partly in relation to persons outside of the United Kingdom.