Payments Process Board Update: November 2022 Meeting | media releases


At its meeting now, the Payments System Board discussed a quantity of issues, which includes:

  • The technological innovation outage at the Reserve Lender on 12 October that disrupted the payments procedure. The Board has requested that the Lender commission a extensive-ranging and thorough external evaluate of the incident and the Bank’s operational threat surroundings with respect to the Reserve Lender Info and Transfer Process (RITS). The Board also supported the Bank’s plans to publish the entire incident report that has been supplied to the market and to publish quarterly operational trustworthiness studies for its retail payment settlement services. In addition, as supervisor of systemically important payment programs, the Bank’s Payments Coverage Section will undertake a qualified evaluation of RITS to establish whether or not more actions are essential.
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  • ASX’s conclusion to pause and reassess all elements of the CHESS replacement job. Associates discussed the really serious shortcomings of ASX’s administration of the project and emphasized the importance of ASX developing a safe and sound and reliable clearing and settlement procedure for Australia’s funds equities markets. The Lender is actively engaged in discussions with ASIC about a joint regulatory reaction to the problems highlighted in the unbiased report. The regulators expect ASX to preserve and assist current CHESS so that it carries on to operate reliably till a new program is set in spot.
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  • Cyber ​​resilience at payments and market infrastructures. Users talked over the modern superior-profile details breaches in the Australian corporate sector, and the numerous initiatives underway to improve the cyber resilience of Australia’s money institutions.
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  • Payments program regulatory reform. Members talked over the development of a set of widespread entry requirements to enable aid payment support providers’ accessibility to payment techniques, even though selling the security of those people systems. The typical entry needs could variety portion of the licensing framework for payment service companies looking for direct accessibility to payment methods.
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  • Level of competition in the debit card market. The Board strongly supports building the debit card sector additional economical and aggressive by means of the the very least-price tag routing (LCR) of twin-network debit card transactions. Subsequent the Bank’s conversations with field individuals, the Board considers it to be each possible and desirable for the marketplace to deliver LCR functionality for cell wallet transactions by the conclusion of 2024. It is requesting that the mobile wallet vendors inform business of the layouts of their LCR alternatives as soon as possible. The Board also expects that service provider choice of debit network would be the default environment in the cellular surroundings, whilst it has a powerful preference for consumers to also have some capability to choose their favored debit network.
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  • Card payments regulation. Users reviewed the compliance of card issuers and the specified card schemes with the Bank’s interchange and entry regimes in specifications 2021/22, In general, there was a large amount of compliance with the Bank’s laws.
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  • The ‘Installments’ providers staying proposed by the global card networks. These services would permit obtain now, fork out afterwards transactions to be processed by way of the card networks. The Board expects that from the launch of these expert services, merchants will be furnished with: (1) a choice of no matter whether to accept Installments transactions (2) clear information and facts about the costs of accepting installment transactions and (3) the capacity to entirely surcharge these transactions if a service provider needs to get better the expenses they incur. If these anticipations are not satisfied, the Board would take into account the advantage of using regulatory action which includes on the situation of guaranteeing retailers have preference of which products to acknowledge. The Financial institution will continue on to carefully observe the implementation of these services.
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  • Improving cross-border payments. Members talked about the perform that is underway in Australia to make cross-border payments faster, less costly and additional clear. The Board emphasised the significance of the business adopting new operation and messaging capabilities for cross-border payments in excess of the coming decades. It expects that NPP participants will meet their commitment to supply the NPP global payments small business services by December 2023. This will aid speed up cross-border payments coming into Australia, by enabling the remaining Australian greenback leg to be processed via the NPP.
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  • Exploration on central lender digital forex (CBDC). The Board discussed progress with the investigate job checking out use instances for a CBDC in Australia. The Board welcomed the important fascination from industry in taking part in the venture, with a huge selection of use circumstance submissions acquiring been been given. The venture is in the course of action of picking out use situations to choose forward to the pilot early following calendar year.
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