SYDNEY (Reuters) -Australia’s central bank will consider from next year how to modernise the interbank settlement system that handles about A$300 billion ($194.94 billion) of daily transactions and is central to the payments system, its governor said on Friday.
“Our payments system must remain safe, reliable, low-cost and easy to use – but also innovative and future-ready,” Reserve Bank of Australia Governor Michele Bullock said in a speech on the payments system in Sydney. “Maintaining and evolving our payments system is therefore not optional. It is an economic imperative.”
Bullock added that from next year, the central bank will begin exploring options to modernise the Reserve Bank Information and Transfer System (RITS), the country’s interbank settlement system, including using modern data exchange methods, longer operating hours and more settlements using central bank money.
“While RITS continues to work well and remains secure and efficient, we recognise that because it is the critical central settlement infrastructure for Australia, it needs to remain fit-for-purpose not just now but into the future,” Bullock said.
In her speech, Bullock made no mention of interest rates or other parts of the economy ahead of the central bank’s November 3-4 policy meeting.
($1 = 1.5389 Australian dollars)
(Reporting by Stella Qiu; Editing by Jamie Freed)
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