Faster payments arrive slowly

Bank clearance deadline pushed back 12 months to May 2008

The new system will allow faster payments between banks

The technology programme to cut banks' three-day clearing period has run into difficulties and is running six months late.

The November 2007 deadline for the introduction of the faster payments scheme has been pushed back to May 2008, according to banking body Apacs.

'The revised timescale will allow sufficient time for the further rigorous testing required at both the centre and by banks to ensure customers can benefit from safe and secure faster payments,' said Apacs in a statement.

The multi-million pound central system is being developed by supplier VocaLink, backed by 13 clearing bank members.

The Office of Fair Trading (OFT) said that the delay is unavoidable.

'The stability of the UK payments system is of paramount importance and should not be put at risk,' said in an OFT statement.