SYDNEY – Australians will be able to make real-time payments outside of normal banking hours by the end of 2016, according to the Reserve Bank.
The Strategic Review of Innovation in the Payment System report released by RBA was initially flagged in 2010.In its findings the RBA said that it was now clear that market failures could hold back innovation.
A key area of reforms involves Direct Entry (DE) payments that use BSB and account numbers to route money between people and businesses.
Because DE payments are traditionally processed the business day after the payments are made, banks are often left crediting the payments without actually getting money, which increases counterparty risk.
On the other hand, payees usually don’t get the money until one or two days after payments have been made.
By the end of 2013, the RBA wants all banks to settle DE payments on the same day that they are first processed.