RBA remains “disappointed” with big bank buy-in on NPP
The central bank remains disappointed with the progress made by some major banks on the New Payments Platform and expect their commitments to be met.
It was an assessment made at the recent Payment System Boards Update.
In the minutes of the meeting, members also discussed the response by NPP Australia to the conclusions of the consultation recently conducted by the Bank and the ACCC on NPP functionality and access.
Members welcomed NPPA's confirmation that it would publish a roadmap for delivering new functionality and that it had already approved a compliance framework that would allow it to mandate certain core capability requirements for NPP participants.
Given its public interest mandate, the Board is expecting this roadmap to be ambitious and to be implemented.
Other agenda items included crypto-assets in the light of the announcement by Facebook Libra announcement.
“Bank staff will continue to coordinate with relevant domestic and overseas regulators, to ensure that any payments system implications are appropriately addressed before any launch,” the meeting said.
The Board also discussed the importance of an effective system of digital identity in promoting competition, security and innovation in the Australian payments system and welcomed the progress by the Australian Payments Council (APC) on developing a framework to support the development of interoperable digital identity services and encouraged the industry to continue to work collaboratively and with government agencies on digital identity solutions.
In fact, data revealed by the Australian Payments Network has shown a decline in the rate of fraud for the first time since reporting of card fraud commenced in 2006.
The data also show a decline in the growth of card-not-present (CNP) fraud, which occurs when stolen card details are used to make online or phone transactions – this was due in part to the framework administered by AusPayNet.
The Board encouraged participants in the e-commerce industry to actively support the new framework and asked its staff to monitor implementation and the impact on CNP fraud.
Another item on the agenda was the migration to ISO 20022.
The Board was briefed on the consultation being undertaken by the central bank and the APC on migration of some existing messaging formats used widely in payments clearing and settlement to a new format that uses the International Organization for Standardization (ISO) 20022 standard.
The Bank and the APC intend to release a second consultation paper in the next month that will canvass some implementation options.