CHAPS-UK

CHAPS UK RTGS high-value same-day settlement ISO 20022.

Definition

CHAPS characteristics: (1) Real-Time Gross Settlement: each payment settled individually in real-time across central bank accounts (Bank of England RTGS service), no netting, irrevocable settlement once executed. (2) Direct Participants ~33 banks 2024 (clearing banks + multiple commercial banks + Bank of England + multiple non-bank PSPs since 2018). (3) Indirect Participants: majority UK banks/PSPs reach CHAPS via direct participant correspondent banking relationship. (4) Same-day settlement: payments submitted between 06:00 - 18:00 BST settled same day. (5) ISO 20022 native CBPR+ (Cross-Border Payments and Reporting Plus) since June 2023: pacs.008 customer credit transfer + pacs.009 financial institution transfer + pacs.002 payment status report + camt messages for reconciliation. (6) High-value examples: property purchase deposit transfers + house sale completions + commercial real estate transactions + corporate treasury sweeps + interbank settlement + significant trade payments + securities settlement payments. (7) Cost: ~£10-30 per payment commercial fee (banks markup central pricing). (8) Bank of England RTGS Renewal Programme: ongoing modernization 2024-2026 increasing resilience + capacity + adding synchronisation services for tokenised assets settlement.

Origin

CHAPS launched 1984 ; modernised CHAPS Sterling 2008 ; operated by Bank of England (consolidated 2017) ; ISO 20022 native June 2023.

Example in context

UK property purchase completion: buyer's solicitor instructs buyer's bank to send £450000 deposit to seller's solicitor account via CHAPS ; bank submits pacs.008 ISO 20022 message to Bank of England RTGS ; settled real-time within minutes ; pacs.002 status report returned ; seller's solicitor confirms receipt + completes property transfer Land Registry registration same day.

Related terms

• BACS UK — complementary retail.
• Faster Payments UK — real-time retail.