Why are purpose codes being introduced?
The introduction of Purpose Codes for CHAPS is being driven by the Bank of England in line with their Policy Statement: Implementing ISO 20022 Enhanced Data in CHAPS. It follows the global changes that are taking place in the payment standards and is intended to create a global standard for payments across banks and financial institutions around the world.
The changes are designed to provide better quality payment data and builds on the Bank of England’s aim to deliver greater payments resilience. You can find out more by visiting the Bank of England website.