MEDIA RELEASE No: 2002-06 Date: 13 March 2002 Embargo: For Immediate Release

EXCHANGE SETTLEMENT ACCOUNT

The Reserve Bank today announced that Cashcard Australia Limited (Cashcard) has been granted an Exchange Settlement (ES) Account. This is in line with the widened access arrangements announced by the Payments System Board in March 1999.

ES Accounts at the Reserve Bank are the means by which providers of payments services settle obligations that have accrued in the clearing process. Cashcard will operate as a central counterparty to its members and as the settlement institution for their consolidated obligations with members of the Consumer Electronic Clearing Stream of the Australian Payments Clearing Association (APCA), which handles ATM and EFTPOS transactions.

Under the current access arrangements, organisations operating in the deferred net settlement system and not supervised by the Australian Prudential Regulation Authority have to meet collateral requirements on an ongoing basis. Cashcard has agreed these requirements with the Reserve Bank.

In granting ES Accounts, the Reserve Bank does not guarantee that holders will be able to meet their settlement obligations.