SIPS Full Form – What is the Full form of SIPS?
SIPS Full Form – Systematically Important Payment System or SIPS are the payment systems in which payment or transaction which is taking place can trigger further disruptions for the economy or the participants among whom the payment or transaction is taking place if it gets disrupted once. One needs to make the system sufficiently protected against the risk otherwise SIPS can break the flow of the economy. These are the major payment clearing systems or real-time gross settlement systems of each country. However, in Europe, SIPS are in the form of pan-European payment systems like TARGET2 and STEP2 operated by the Euro Banking Association. In 2001, SIPS received some rules which are called Core Principles for Systematically Important Payment Systems. In some banking circles, it is referred to as the 10 Commandments. These core principles were issued by the Bank for International Settlements or the BIS. In the year 2003, these rules were further elaborated by the European Central Bank or the ECB. These were related to how the Core Principles for Systematically Important Payment Systems would be applied to the Euro retail payment systems.