The Reserve Bank of Australia published a Payments System Board meeting update signalling forthcoming regulatory interventions following the Australian Securities Exchange’s CHESS batch failure and setting out the Board’s priorities on account-to-account payments, retail payments regulation and central bank digital currency (CBDC) research. The Board treated the 20 December 2024 CHESS batch failure as a major operational incident and resolved to take regulatory interventions to provide assurance that the ASX addresses related risks from aging assets in critical financial infrastructure. On account-to-account payments, members endorsed RBA recommendations to address risks in the industry’s intended decommissioning of the Bulk Electronic Clearing System by a target date of 2030, including agreeing a future-state vision and strategic objectives with Government and the RBA, assessing options to reach that end-state, and putting in place stronger coordination and stakeholder engagement mechanisms. Members also supported greater pricing transparency for end-users and the establishment of a robust pricing data collection to inform future policy deliberations. On retail payments regulation, the Board is exploring options on merchant card payment costs and surcharging and plans a consultation paper setting out preferred options. CBDC work continues via Project Acacia on wholesale digital money for tokenised asset settlement, including reviewing industry expressions of interest for testing and the launch of an Industry Advisory Group, alongside plans for focus groups to explore potential unmet needs for a retail CBDC. Further details on the RBA’s regulatory response to the CHESS incident are due by the end of March, and a report on the BECS decommissioning risk assessment is due later in March, with an update on industry implementation of the recommendations requested in a year. The retail payments consultation paper is expected in mid-2025, while Project Acacia testing is planned for 2025 and retail CBDC focus groups are expected in the second half of 2025.
Reserve Bank of Australia 2025-03-06
Reserve Bank of Australia's Payments System Board to publish CHESS response, outline BECS decommissioning recommendations and launch mid-2025 retail payments consultation
The Reserve Bank of Australia announced regulatory interventions after the Australian Securities Exchange's CHESS batch failure, focusing on account-to-account payments, retail payments regulation, and central bank digital currency (CBDC) research. Initiatives include addressing risks in decommissioning the Bulk Electronic Clearing System by 2030, enhancing pricing transparency, exploring merchant card payment costs, and continuing CBDC work through Project Acacia.