Media Release Payments System Issues: Retail Operational Incidents
The Reserve Bank has responsibility for promoting an efficient and stable payments system. In light of continued rapid growth in the value of payments settled across electronic retail payments systems, and following a number of operational incidents, the Payments System Board noted in its Annual Report 2011 that the Reserve Bank and the Australian Prudential Regulation Authority would consider possible approaches to strengthening the handling of any future disruptions.
As an initial measure, the Reserve Bank intends to formalise its requirements for the reporting of major retail payments system incidents. Authorised Deposit-taking Institutions (ADIs) that provide retail payments services and operate Exchange Settlement Accounts with the Reserve Bank will be required to report significant incidents in their retail payments operations to the Reserve Bank, according to specified criteria. Details will be advised in due course.
At its meeting on 17 February 2012, the Payments System Board considered whether these requirements should be supplemented with additional measures. The Board agreed that it would open a dialogue with ADIs on the organisation of their retail operations, with a view to developing proposals and launching a formal consultation. In the first instance, the Board is particularly interested in industry views on the following:
- sources of vulnerability in ADIs' retail operational processes;
- existing controls, safeguards and contingencies in ADIs' retail operations; and
- ADIs' existing plans for upgrade and enhancement of the technology supporting retail operations and the objectives of these plans.
Parties wishing to engage with the Bank on these issues should contact the Head of Payments Policy Department (firstname.lastname@example.org) by 30 March 2012.