The Reserve Bank is taking aim at banks over the handling of electronic glitches that routinely bungle payments and prevent people from accessing their funds online and through automated teller machines. As reported by Sydney Morning Herald on 21 Feb 2012.
The RBA’s Payments System Board said yesterday it is seeking industry views on “sources of vulnerability” for banks’ retail operations processes and the kind of controls and safeguards they have in place for when errors occur. “As an initial measure, the Reserve Bank intends to formalise its requirements for the reporting of major retail payments system incidents,” the RBA said.
Banks will “be required to report significant incidents in their retail payments operations to the Reserve Bank, according to specified criteria.
“The central bank announced earlier plans to devise specific requirements for the reporting of “major retail payments system incidents” after a series of high-profile technical failures among Australia’s major banks. Many of the issues afflicting Australia’s banks are related to ageing technology or the upgrades of the complex systems that underpin them. To read the full article posted on Sydney Morning Herald click here.
Dr. Malcolm Edey, Assistant Governor (Financial System) & Deputy Chairman Payments System Board, Reserve Bank of Australia will be presenting at the upcoming Cards & Payments Conference in Sydney on 20-21 March. He will presented on Regulation and efficiency in the payments system. Find out more here.