Chaps is used for processing large time-sensitive payments used for football player purchases, art deals and home completions and last went down for six hours in August last year. The daily value of payments through the system is over £300 billion per day.

The 'global payments issue' cited by the bank is believed to be related to problems with connecting to the Swift financial messaging network.

"We are mindful of the impact this is likely to have and are working closely with a third party supplier, industry and other authorities to resolve the issue as promptly as possible," says the central bank.

The BofE is advising consumers and businesses to contact their bank or other payment service advisor if they are worried about a payment.

"Retail payment systems are unaffected so people and businesses can continue to use cash points, card payments and bank transfers as normal," states the Bank.

The Bank has given no explanation for the outage, the third serious technical fault to have struck the crucial bank-to-bank payments infrastructure over the past deacde.

In 2015, The Bank of England was ordered to improve contingency arrangements and strengthen its crisis management framework following an independent review of a ten-hour Chaps breakdown the previous year.

In March 2019, the central bank was hauled over the coals by a Common Select Committee in a searing critique of its outmoded technology estate, culture and procurement activities.

The Bank has since kicked off a wider multi-year programme to renew the RTGS service that will see the roll out of a new core settlement engine that was initially scheduled for implementation this summer.

Update: In a statement on the six hour breakdown late this afternoon, the Bank of England says: "We are pleased to confirm that the third party supplier has restored service following their earlier issues, and CHAPS payments are settling as normal.

"We expect that all payments received by the Bank today will be settled by the end of the day."