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The Introduction of Same-day Settlement of Direct Entry Obligations in Australia

Author

Listed:
  • Adriarne Gatty

    (Reserve Bank of Australia)

  • Sascha Fraser

    (Reserve Bank of Australia)

Abstract

In November 2013, the Reserve Bank introduced changes to its Reserve Bank Information and Transfer System (RITS) to allow the same-day settlement of non-government direct entry obligations. This outcome met one of the objectives set by the Payments System Board in its June 2012 Strategic Review of Innovation in the Payments System. The changes provide a platform for greater efficiency and innovation in Australia’s payments system, potentially allowing faster access to funds, and reducing the key risks associated with deferred settlement. The support of the Australian Payments Clearing Association (APCA) and the banking industry was critical in the successful development and implementation of the new settlement arrangements. The transition to the new arrangements has progressed smoothly, with the vast bulk of customers’ direct entry transactions, around $16.5 billion, now settled on a same-day basis each business day.

Suggested Citation

  • Adriarne Gatty & Sascha Fraser, 2014. "The Introduction of Same-day Settlement of Direct Entry Obligations in Australia," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 55-64, June.
    • Handle: RePEc:rba:rbabul:jun2014-07
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2014/jun/pdf/bu-0614-7.pdf
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    References listed on IDEAS

    as
    1. Peter Gallagher & Jon Gauntlett & David Sunner, 2010. "Real-time Gross Settlement in Australia," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 61-69, September.
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