MEDIA RELEASE No: 2003-11 Date: 15 September 2003 Embargo: For Immediate Release

REGULATION OF PURCHASED PAYMENT FACILITIES UNDER THE PAYMENT SYSTEMS (REGULATION) ACT 1998

The Payments System Board has reviewed the Reserve Bank’s regulatory responsibilities under the Payment Systems (Regulation) Act 1998 (the Act) for certain purchased payment facilities.

Consistent with its powers under the Act, the Reserve Bank proposes to:

• declare that the Act does not apply to purchased payment facilities where the total outstanding amount of the facility is $1,000,000 or less, or where a facility can be used to make payments to 50 or fewer persons; and
• exempt certain purchased payment facilities from the requirement to obtain an authority under the Act, where the obligations are guaranteed by an authorised deposit-taking institution, or by a Commonwealth, state or local government authority.

The draft exemptions are attached to a discussion paper providing further background information and are available on the website of the Reserve Bank of Australia (www.rba.gov.au). Parties who wish to comment on the Reserve Bank’s proposals should do so in writing by 24 October 2003 to:

Head of Payments Policy
Reserve Bank of Australia
GPO Box 3947
SYDNEY NSW 2001