The Reserve Bank of Australia has emphasized the need for clearer planning regarding the decommissioning of the Bulk Electronic Clearing System (Becs). They argue that the industry lacks a unified vision for the desired features of account-to-account payments in Australia, and that coordination, planning, and certainty regarding the transition have been inadequate.
Becs plays a crucial role in facilitating a variety of essential payments for Australians, including welfare, pensions, salaries, and bill payments. Despite being a reliable system for over 30 years, significant updates are necessary to ensure it remains effective.
In the 2023 Strategic Plan for Australia’s Payments System, the Commonwealth Treasury backed a phased, industry-led transition away from Becs, suggesting 2030 as a potential target date. The plan also highlighted the challenges involved in migrating bulk payments from Becs, particularly for large businesses and government entities that have integrated it into their processes.
A risk assessment by the central bank indicates that the industry must articulate a vision for the future state and strategic goals for account-to-account payments in Australia. It also stressed the importance of thoroughly exploring alternative pathways to reach this future state.
Brad Jones, assistant governor of the RBA’s Payments System Board, remarked, “Any major disruption to account-to-account payments could jeopardize confidence in the financial system. Therefore, a transition of this scale must be well-organized and coordinated. The industry needs to establish a clear vision for the future, assess various options to reach that vision, and prioritize user needs and public interest considerations from the beginning.”
The RBA expects the industry to tackle these recommendations with “priority and urgency,” stating that achieving the intended benefits of any transition in payment systems will require some degree of reprioritization and careful consideration of contingencies.