The Payments System Board convened today to discuss several key topics, focusing on the New Payments Platform (NPP), regulatory reforms, and improvements in payment systems. The board reviewed the Reserve Bank of Australia's (RBA) first assessment of the NPP under the Prominent Payment Systems oversight regime. This evaluation considered governance effectiveness, risk management frameworks, and operational resilience. Discussions highlighted the need for strong operational resilience as account-to-account payments transition to the NPP.
Additionally, members discussed progress on the RBA's financial market infrastructure regulatory reforms. A crisis response framework for clearing and settlement facilities is underway, with public guidance expected by 2025. Updates were also provided on resolution planning for central counterparties located domestically.
Central clearing in Australian bond and repo markets was another topic of discussion. Feedback from industry consultations led by the Council of Financial Regulators (CFR) was shared, with a report summarizing stakeholder feedback anticipated in early 2025.
The board conducted its annual review of compliance with card payments regulation. Card issuers and acquirers showed high compliance with RBA regulations regarding interchange fees, surcharging standards, and access regimes during 2023/24.
Efforts to improve online card transaction security were also noted. AusPayNet's development of a technical standard for token portability was welcomed as a means to enhance security and competition within the payment system.
Cross-border payments saw significant attention as well. The board discussed initiatives aimed at improving cost efficiency, speed, and transparency in international transactions. These include adherence to Australian Competition and Consumer Commission guidelines for money transfer providers and transitioning incoming cross-border payments to the NPP’s International Payments Service. Adoption of ISO 20022 requirements by 2027 will be monitored closely by the RBA to ensure Australia meets G20 roadmap commitments.
Overall, these discussions underscore efforts to strengthen payment systems both domestically and internationally while ensuring compliance with existing regulations.