The Bulk Electronic Clearing System should not be closed until “a ubiquitous batch service is available for all payments” the industry lobby Independent Payments Forum Australia argues in a response to the Reserve Bank’s recent (harsh) assessment on industry preparations to decommission BECS in mid 2030.
The RBA’s Risk Assessment on the Decommissioning of the Bulk Electronic Clearing System said that while it is a highly reliable system, “significant changes are needed to keep it fit for purpose” the RBA risk assessment says.
As industry planning stands, bulk payments – such as welfare and payroll – would be transitioned to an account-to-account payment via the more modern rails of the New Payments Platform by 2030.
BECS has been in operation for more than 30 years.
““Industry, government, the RBA and end users are yet to agree strategic objectives or a vision for the future of A2A payments …. Alongside a vision and target end state, a governance and coordination framework is also required to enable analysis of a more comprehensive set of options.”
Reieterating their own long-standing cynicsm that the New Payments Platform will ultimately prove fit for purpose to displace BECS, the Independents Payments Forum further argued that BECS should not be closed:
• Until the NPP has equivalent bank account coverage to BECS
• NPP services are standardised to ensure interoperability and portability,
• And a reliable contingency network is identified and tested.
Further, the IPF believes “industry should consider pausing batch use case migrations or debulking projects until this is achieved.”
And; “NPP and its wholesale fees [must be] regulated by the RBA as soon as possible.”