MEDIA RELEASE No: 2004-04 Date: 10 March 2004 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 for purchased payment instruments. Following a decision by the Board, the Reserve Bank has today published exemptions in the Gazette such that a purchased payment facility will not be subject to the Act where:

• the total outstanding amount of the facility is limited to less than $1,000,000, or where a facility can be used to make payments to 50 or fewer persons; or
• its obligations are guaranteed by an authorised deposit-taking institution, or by a Commonwealth, state or local government authority.

A Regulation Impact Statement is available on the website of the Reserve Bank of Australia (www.rba.gov.au).