Media Release Payment Systems and Netting Act 1998: Approval of Netting Arrangement

Under the Payment Systems and Netting Act 1998, the Bank has the power to grant approvals to real-time gross settlement (RTGS) systems and to multilateral netting arrangements. These approvals provide certain legal protections for obligations arising in such systems.

At its meeting on 19 August 2016, the Payments System Board approved the multilateral netting arrangements coordinated by eftpos Payments Australia Limited, subject to compliance with certain conditions. These conditions have now been met and the relevant version of the eftpos Scheme Rules and the eftpos Technical, Operational and Security Rules (together, the eftpos Rules) will come into effect on 25 July. As of that date, each multilateral netting arrangement contained in the eftpos Rules will be an ‘approved netting arrangement’ for the purposes of the Payment Systems and Netting Act 1998.