RBA Board updates on payments regulation, encryption, surcharging

The Reserve Bank of Australia's Payments System Board approved a comprehensive assessment of the Reserve Bank Information and Transfer System (RITS), with publication expected in the coming weeks.

A public consultation on payments system regulation is also set to launch by the end of June, inviting stakeholder views on interventions to boost competition, efficiency, and financial safety.

This consultation will additionally address strengthening cryptographic protections across the Australian payments system, moving beyond card payments.

The Board endorsed this broader focus, citing emerging risks from classical and quantum computing, and reiterated the industry's December 2030 target for cryptographic uplift.

Separately, the RBA has implemented its Review of Merchant Card Payment Costs and Surcharging, amending RBA Standards registered on April 14, 2026.

Australian Payments Plus announced a zero-surcharge limit for eftpos transactions effective October 1, 2026.

The Board discussed initial findings from public focus groups assessing how the current payments system meets Australians' needs.

Insights were gathered on existing challenges and expectations for potential features of digital money.

Notably, the findings indicated that Australians were largely indifferent to the concept of a retail central bank digital currency (CBDC).

These focus group findings will be summarized in a report later this year by an external vendor and will inform the RBA's updated assessment of the public policy case for retail CBDC in Australia, slated for publication in 2026/27. Regarding surcharging, the Board had previously decided not to prevent non-designated payment systems from introducing no-surcharge rules, clarifying that this does not pre-empt any future decisions on these systems within the upcoming Review of Payments System Regulation.