Payments System Board Charter March 2025

1. Introduction

The Payments System Board of the Reserve Bank of Australia (Bank) is established under and governed by the provisions of the Reserve Bank Act 1959. It oversees the exercise by the Bank of its powers and functions under the Payment Systems (Regulation) Act 1998, the Payment Systems and Netting Act 1998 and Parts 7.3 and 7.3B of the Corporations Act 2001.

This Charter outlines the role, responsibilities and composition of the Payments System Board.

2. Role, objectives and responsibilities of the Payments System Board

The key responsibilities of the Payments System Board are as follows:

  • to determine the payments system policy (as defined in the Reserve Bank Act) of the Bank in a way that, in the Board’s opinion, is directed to the greatest advantage of the people of Australia;
  • to promote the proper, efficient and effective implementation by the Bank of that policy;
  • to ensure the Bank’s functions and powers under the Payment Systems (Regulation) Act 1998 and the Payment Systems and Netting Act 1998 are performed and exercised in a way that, in the Board’s opinion, best contributes to:
    • controlling risk in the financial system;
    • promoting the efficiency of the payments system;
    • promoting competition in the market for payment services, consistent with the overall stability of the financial system;
  • to ensure the Bank’s functions and powers under Parts 7.3 and 7.3B of the Corporations Act 2001 are performed and exercised in a way that, in the Board’s opinion, best contributes to the overall stability of the financial system;
  • to report to the Minister as soon as practicable after 30 June each year on the matters prescribed in s 25M of the Reserve Bank Act; and
  • from time to time to inform the Government about the performance of its functions and the exercise of its powers, including its determination of the Bank’s payments system policy.

The Payments System Board must perform its functions and exercise its powers having regard to the duties of the Governance Board as the accountable authority of the Bank for the purposes of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

In conducting its role, the Payments System Board is expected to operate in accordance with the Reserve Bank Act, PGPA Act, this Charter, relevant Bank policies and applicable legal and regulatory requirements.

3. Membership

The members of the Payments System Board are:

  • the Governor;
  • one representative of the Bank appointed by the Governor (the Bank’s member), who must be either a member of the Reserve Bank Service or one of the other two boards of the Bank;
  • one representative of the Australian Prudential Regulation Authority (APRA) appointed by APRA; and
  • up to five other members appointed by the Treasurer.

The Governor is the Chair of the Payments System Board. The Bank’s member is the Deputy Chair.

The Deputy Chair is to act as the Chair during a vacancy in the office of the Governor or during any period when the Governor is absent from Australia or for any reason unable to perform the duties of the office.

4. Meetings

4.1 Frequency

The Payments System Board meets as often as is necessary for the efficient performance of its functions and fulfilment of its responsibilities. The Chair can convene a meeting of the Payments System Board at any time.

4.2 Absence from deliberations or decision

Members must comply with section 7E of the Reserve Bank Act in relation to the disclosure of material personal interests relating to matters considered at a meeting of the Payments System Board.

4.3 Quorum

A quorum for any meeting will be five members.

4.4 Conduct of meetings

Meetings of the Payments System Board are conducted in accordance with the Reserve Bank Act.

The Chair must preside at all meetings at which the Chair is present. If the Chair is not present at a meeting, the Deputy Chair presides.

A question arising at a meeting of the Payments System Board is to be determined by a majority of the votes of the members present and voting. The person presiding at the meeting has a deliberative vote and, if the votes are equal, a casting vote.

Meetings may be held, and members may participate in meetings, by any means of communication considered appropriate by the Chair. A member who participates in any way considered appropriate by the Chair is taken to be present at the meeting and to form part of the quorum.

Members of management may attend Payments System Board meetings at the Board’s request to provide information within their areas of responsibility.

4.5 Decisions without a meeting

The Payments System Board may, in accordance with section 25H of the Reserve Bank Act, make decisions without meeting if:

  • a majority of the members of the Board entitled to vote on the proposed decision provide written notice (including via electronic means) signifying that they approve the resolution in question;
  • that majority would have constituted a quorum had the resolution been considered at a meeting of the Board; and
  • all the members of the Board were informed of the proposed decision, or reasonable efforts were made to inform all of the members of the Board of the proposed decision.

A member of the Board is not entitled to vote on a proposed decision if the member would not have been entitled to vote on that proposal if the matter had been considered at a meeting of the Board.

The resolution is passed when the last of the members who constitute the majority provides written notice of their approval.

4.6 Leave of absence

The Payments System Board may grant leave of absence to a member of the Board on the terms and conditions that the Board determines.

5. Role and responsibilities of Governor

Consistent with section 12(2) of the Reserve Bank Act, the Governor is responsible for the day-to-day management of the Bank, including implementing the policies set by the Payments System Board. The Governor must implement those policies in a manner consistent with any directions as to implementation that may be provided by the Payments System Board.

The Governor is responsible for ensuring the timely preparation, presentation, adequacy and integrity of information provided to the Payments System Board, to enable the Board to fulfill its responsibilities.

6. Role and responsibilities of Secretary

The Bank’s Secretary is accountable to the Payments System Board, through the Chair, on matters relating to the proper functioning of the Board. All members have direct access to the Bank’s Secretary.

7. Access, reliance and advice

The Payments System Board has free and unfettered access to information, senior management and any other relevant internal and external party. Without limitation, it may request direct access to the Bank’s legal counsel (internal or external) when considering matters that raise or involve legal issues. It may make any enquiries to fulfil its responsibilities.

The Payments System Board may obtain independent advice at the Bank’s expense. This includes by engaging and receiving advice and recommendations from appropriate independent experts. The engagement and any advice received will be independent of management but will require the prior approval of the Chair unless the Chair has a conflict of interest or obtaining that approval is not reasonably practicable in the relevant circumstances.

Payments System Board members are entitled to rely on information, advice and assurances provided by management on matters within their area of responsibility, and on the expertise of independent experts, provided they are not aware of any grounds that would make such reliance inappropriate.

8. Board performance and Charter review

The Payments System Board assesses its performance and the fulfilment of its responsibilities under this Charter annually.

The Payments System Board reviews the adequacy of this Charter every two years, or as required.

The Secretary administers this Charter.