(7 September 2015 – Australia) Leading an inquiry into the Reserve Bank of Australia’s (RBA) Payment Systems Board, Senator Sam Dastyari, argues that the central bank should lose its regulatory power.
He said its Payments System Board – which runs the real-time payments system and governs all transaction rules – operates in a guarded environment, advocating for more transparency.
“It is run like a secret society. No one can explain why this is a function retained by the RBA,” he said.
“The Payment Systems Board is the least transparent, most secretive and poorly understood government body that is responsible for every transaction that takes place in this country.”
“I can understand why monetary policy is kept at arm's length from government, but payments should be government policy,” Senator Dastyari said.
“Its functions more appropriately fit within ASIC or APRA. Why are we treating this as some completely independent function when really this should be policy.”
The central bank highlights that it set up the Payment Users Consultation Group this earlier year alongside the new Australian Payments Council to liaise with industry. Further, it has conducted numerous consultations on its present payments review and will do so again in November.
Malcolm Edey, RBA Assistant Governor – Financial Systems, said last month that although the payments board publishes press releases about its decisions, it is harder to distribute full minutes as commercially sensitive information was discussed.
Further, Senator Dastyari indicated he would like the RBA to delay a decision on cuts to merchant fees paid to banks for accepting credit cards, which it is considering in its present review of payments regulation.