The Reserve Bank of Australia is set to start evaluating methods to modernize the country's interbank settlement system, which currently handles transactions worth approximately AUD 300 billion daily. Governor Michele Bullock announced this initiative in a speech on Friday, emphasizing the importance of maintaining a safe, reliable, cost-effective, and user-friendly payments system that also fosters innovation and readiness for future demands. Bullock described this modernization as "an economic imperative."
The review will consider potential enhancements to the Reserve Bank Information and Transfer System (RITS). These enhancements may include adopting contemporary data exchange methods, extending operating hours, and increasing settlements using central bank funds. Despite RITS being secure and efficient at present, Bullock highlighted the necessity for it to remain fit for purpose both now and in the future.
Bullock did not address interest rates or the broader economic landscape in her speech, which comes ahead of the central bank’s policy meeting scheduled for November 3–4.
