2005 Self-assessment of the Reserve Bank Information and Transfer System Responsibility A

The central bank should define clearly its payment system objectives and should disclose publicly its role and major policies with respect to systemically important payment systems.

A.1 Assessment of Compliance

Australia's central bank, the Reserve Bank, complies with this principle.

The power to determine the Reserve Bank's payments system policy resides with its Payments System Board. This includes the exercise of responsibilities under the Payment Systems (Regulation) Act and the Payment Systems and Netting Act. The Payments System Board comprises the Governor as chair, one other Reserve Bank appointee, an appointee from APRA and up to five other members.

The Payments System Board's mandate is set out in the amended Reserve Bank Act. It is responsible for determining the Reserve Bank's payments system policy in a way that will best contribute to controlling risk in the financial system; promoting the efficiency of the payments system; and promoting competition in the market for payment services, consistent with overall stability of the financial system.

Payments System Board policy decisions are communicated through media releases, which are published on the Reserve Bank website (www.rba.gov.au). Where a policy decision is of direct relevance to a payment system, or its participants, this is also communicated by letter. Approvals of payment systems by the Payments System Board, under powers granted to it by legislation, are published in the Commonwealth of Australia Gazette – from which time they take effect. The provisions of some Acts require tabling of approvals before Parliament. The Reserve Bank maintains on its website lists of approvals granted, and standards and access regimes imposed.