CMA delays open banking ‘sweeping’ timetable

The UK’s Competition and Markets Authority CMA has agreed to push back the introduction of Variable Recurring Payments (VRPs) for sweeping services by six months after accepting that the country’s big banks won’t meet the target date of January.

The CMA-clearing – automatic download of cash transfers between customer accounts – in July due to complaints from some of the country’s largest banks.

VRPs allow customers to link authorized payers to their bank account to pay in customer interest within the agreed terms.

Initially, nine major UK banks – CMA9 – were added on January 31 to implement VRP and allow third-party providers to use VRPs to allow their customers to withdraw funds into their accounts. see recent publication for others.

Thus, earlier this month, Open Banking Activism Director Charlotte Crosswell issued a CMA warns that many, if not all, CMA9s have a fair chance of getting their due date.

The CMA approved a revised plan requiring banks to submit a detailed submission plan in January and to begin testing and issuing a TPP certificate in the first term before completing the accommodation test in July until they are ready.

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