Commonwealth Consolidated Acts Commonwealth Consolidated Acts
1 Subsection 5(1)
Insert:
"APRA" means the Australian Prudential Regulation Authority.
2 Subsection 5(1)
Insert:
"APRA Board member" means a member of APRA's Board of management, including its Chair and its Chief Executive Officer.
3 Subsection 5(1)
Insert:
"APRA staff member" has the same meaning as in the Australian Prudential Regulation Authority Act 1998 .
4 Subsection 5(1) (definition of the Board )
Repeal the definition.
5 Subsection 5(1) (definition of Deputy Governor )
Omit "a Deputy Governor", substitute "the Deputy Governor".
6 Subsection 5(1)
Insert:
"monetary and banking policy" means monetary and banking policy for the purposes of the Bank's functions or powers under this Act or any other Act, but does not include payments system policy.
7 Subsection 5(1)
Insert:
"officer of the Reserve Bank Service" means an officer appointed under Part VII.
8 Subsection 5(1)
Insert:
"payment system" has the same meaning as in the Payment Systems (Regulation) Act 1998 .
9 Subsection 5(1)
Insert:
"payments system policy" means policy for the purposes of the Bank's functions or powers under the Payment Systems (Regulation) Act 1998 and the Payment Systems and Netting Act 1998 .
10 Subsection 5(2)
Repeal the subsection, substitute:
(2) Unless the contrary intention appears, a reference in this Act to an Act includes a reference to regulations made under that Act.
11 Before section 7
Insert:
Division 1 -- Constitution of the Reserve Bank
12 At the end of section 7A
Add:
(2) For the purposes of the Commonwealth Authorities and Companies Act 1997 , the members of the Reserve Bank Board (rather than the members of the Payments System Board) are the directors of the Bank.
(3) However, sections 21 to 27 of the Commonwealth Authorities and Companies Act 1997 , and Schedule 2 to that Act, apply to the members of the Payments System Board as though they were directors of the Bank.
Note: The heading to section 7A is replaced by the heading " Special provisions relating to how the Commonwealth Authorities and Companies Act 1997 applies to the Bank ".
13 Section 8
After "for the purposes of this Act", insert "and any other Act conferring functions on the Bank".
14 Section 8
After "by this Act", insert "and such other Acts".
15 After section 8
Insert:
Division 2 -- Policy and management of the Reserve Bank
(1) The Bank has 2 Boards:
(a) the Reserve Bank Board; and
(b) the Payments System Board.
(2) The Reserve Bank Board is responsible for the Bank's monetary and banking policy, and the Bank's policy on all other matters, except for its payments system policy (see section 10).
(3) The Payments System Board is responsible for the Bank's payments system policy (see section 10B).
(4) Disagreements between the Boards are to be resolved in accordance with section 10C.
(5) For how the Commonwealth Authorities and Companies Act 1997 applies in relation to the 2 Boards, see subsections 7A(2) and (3).
16 Subsection 10(1)
Omit "Board", substitute "Reserve Bank Board".
17 Subsection 10(1)
After "the policy of the Bank in relation to any matter", insert ", other than its payments system policy,".
18 Subsection 10(2)
Omit "Board" (wherever occurring), substitute "Reserve Bank Board".
19 Subsection 10(2)
"Omit ", the" Banking Act 1959 and the regulations under that Act", substitute "and any other Act, other than the Payment Systems (Regulation) Act 1998 and the Payment Systems and Netting Act 1998 ,".
20 After section 10
Insert:
10A Establishment of Payments System Board
There is to be a Payments System Board of the Reserve Bank which is to be constituted as provided in Part IIIA.
10B Functions of Payments System Board
(1) The Payments System Board has power to determine the Bank's payments system policy.
(2) The Payments System Board has power to take whatever action is necessary to ensure that the Bank gives effect to the policy it determines.
(3) It is the duty of the Payments System Board to ensure, within the limits of its powers, that:
(a) the Bank's payments system policy is directed to the greatest advantage of the people of Australia ; and
(b) the powers of the Bank under the Payment Systems (Regulation) Act 1998 and the Payment Systems and Netting Act 1998 are exercised in a way that, in the Board's opinion, will best contribute to:
(i) controlling risk in the financial system; and
(ii) promoting the efficiency of payments system; and
(iii) promoting competition in the market for payment services, consistent with the overall stability of the financial system.
10C Resolving differences between the Boards
(1) If a policy determined by the Reserve Bank Board and a policy determined by the Payments System Board are inconsistent:
(a) the Reserve Bank Board's policy prevails; and
(b) the Payments System Board's policy has effect as if it were modified to remove the inconsistency.
(2) If there is a disagreement between the Reserve Bank Board and the Payments System Board as to:
(a) whether there is an inconsistency of policy to which subsection (1) applies, or the extent of such an inconsistency; or
(b) the effect of paragraph (1)(b) on a policy of the Payments System Board;
the disagreement is to be resolved as determined by the Governor.
(3) If there is a disagreement between the Reserve Bank Board and the Payments System Board as to which of the Boards is responsible for determining the Bank's policy on a matter, the disagreement is to be resolved as determined by the Governor.
21 Subsection 11(1)
Repeal the subsection, substitute:
(1) The Government is to be informed of the Bank's policy as follows:
(a) the Reserve Bank Board is to inform the Government, from time to time, of the Bank's monetary and banking policy;
(b) the Payments System Board is to inform the Government, from time to time, of the Bank's payments system policy.
Note: The heading to section 11 is altered by inserting " with Government " after " opinion ".
22 Subsection 11(2)
Omit "the Board whether that policy", substitute "one of the Boards (the relevant Board ) about whether a policy determined by the relevant Board".
23 Subsection 11(2)
Before "Board" (last occurring), insert "relevant".
24 Subsections 11(3), (5), (6) and (7)
Before "Board" (wherever occurring), insert "relevant".
25 Subsection 12(1)
Omit "2 Deputy Governors", substitute "a Deputy Governor".
26 Subsection 12(2)
Omit "subsection 10(1)", substitute "sections 10 and 10B".
27 Subsection 12(3)
Omit "A Deputy Governor", substitute "The Deputy Governor".
28 Subsection 12(3)
Omit "designated by the Treasurer".
29 Paragraph 14(1)(b)
Omit "Governors", substitute "Governor".
Note: The heading to section 14 is altered by inserting " Reserve Bank " before " Board ".
30 Paragraph 14(1)(d)
Omit "7", substitute "6".
31 Paragraph 14(1)(d)
After "appointed", insert "in writing".
32 Subsection 14(2)
Omit "7", substitute "6".
33 Paragraph 14(4)(a)
Repeal the paragraph, substitute:
(a) is to be appointed for a period, not exceeding 5 years, specified in the instrument of appointment; and
34 Subsection 14(5)
Repeal the subsection.
35 Sections 15, 16, 17, 18, 18A, 20, 21, 21A, 22 and 24A
Before "Board" (wherever occurring), insert "Reserve Bank".
Note: The headings to sections 21 and 22 are altered by inserting " Reserve Bank " before " Board ".
36 Subsection 15(4)
Omit "a Deputy Governor", substitute "the Deputy Governor".
37 At the end of section 16
Add:
(2) However, the member does not have to do so if he or she is also a member of the Payments System Board and has made an oath or affirmation, and a declaration of secrecy, under section 25E.
38 Section 19
Repeal the section.
39 Subsection 20(1)
Omit "designated by the Governor".
40 Subsection 21(3)
Omit "6", substitute "5".
41 Subsection 21A(1)
Omit "Governors", substitute "Governor".
42 Subsection 21A(1)
Omit "a Deputy Governor", substitute "the Deputy Governor".
43 Subsection 21A(2)
Omit "Governors", substitute "Governor".
44 After section 22
Insert:
The Reserve Bank Board may regulate proceedings at its meetings as it considers appropriate. However, proceedings at a meeting must not be inconsistent with this Part.
Note: Section 33B of the Acts Interpretation Act 1901 contains further information about the ways in which members may participate in meetings.
22B Resolutions without meetings
A resolution is taken to have been passed at a meeting of the Reserve Bank Board if:
(a) the Reserve Bank Board has determined:
(i) that resolutions may be passed in accordance with this section; and
(ii) the method of indicating agreement with a resolution passed in accordance with this section; and
(b) without meeting, a majority of the members indicate agreement with the resolution in accordance with the method determined by the Reserve Bank Board; and
(c) the majority would have constituted a quorum at a meeting of the Reserve Bank Board; and
(d) all members were informed of the proposed resolution, or reasonable efforts were made to inform all members of the proposed resolution.
45 Section 24
Omit "Governors", substitute "Governor".
46 Section 24A
Omit "Governors", substitute "Governor".
47 Section 25
Omit "a Deputy Governor", substitute "the Deputy Governor".
48 After Part III
Insert:
Part IIIA -- The Payments System Board
Division 1 -- The members of the Payments System Board
25A Membership of Payments System Board
The Payments System Board consists of the following members:
(a) the Governor;
(b) one representative of the Bank;
(c) one representative of APRA;
(d) up to 5 other members.
(1) The member who is the representative of the Bank referred to in paragraph 25A(b) is to be appointed by the Governor. The person appointed must be a member of the Reserve Bank Board or an officer of the Reserve Bank Service.
(2) The member who is the representative of APRA referred to in paragraph 25A(c) is to be appointed by APRA's Chief Executive Officer. The person appointed must be an APRA Board member or an APRA staff member.
Note: The CEO may appoint himself or herself.
(3) Each other member referred to in paragraph 25A(d) is to be appointed by the Governor - General for a period specified in the instrument of appointment. The period specified must not exceed 5 years.
(4) All appointments under this section are to be in writing.
(5) All appointments under this section are to be on a part - time basis.
Note 1: Members appointed under subsection (1) or (2) are not appointed for a specified period, however, their appointments can be terminated at any time (see section 25K).
Note 2: The Governor is an ex officio member of the Payments System Board (and so is not separately appointed to the Board).
25C Chair of the Payments System Board
The Governor is the Chair of the Payments System Board.
25D Deputy Chair of the Payments System Board
(1) The member of the Payments System Board referred to in paragraph 25A(b) is the Deputy Chair of the Board.
(2) The Deputy Chair is to act as the Chair during any period when:
(a) the office of Governor is vacant; or
(b) the Governor is absent from Australia or is, for any reason, unable to perform the duties of Chair of the Payments System Board.
(3) The Deputy Chair has, when acting as the Chair, all the powers, duties, rights and entitlements of the Chair of the Payments System Board.
(1) Each member of the Payments System Board must, before first starting to act as a member of the Board:
(a) make an oath or affirmation of allegiance; and
(b) make a declaration of secrecy.
However, the member does not have to do so if he or she is also a member of the Reserve Bank Board and has made an oath or affirmation, and a declaration of secrecy, under section 16.
(2) The oath or affirmation of allegiance:
(a) is to be in accordance with the form set out in the Schedule to the Constitution; and
(b) is to be made before a Justice of the Peace or a Commissioner for taking Affidavits.
(3) The declaration of secrecy:
(a) is to be in the prescribed form; and
(b) is to be made before a Justice of the Peace or a Commissioner for taking Affidavits.
(1) The Payments System Board is to meet at times and places as determined by the Payments System Board or as directed by the Chair.
(2) The Chair is to preside at all meetings of the Payments System Board at which he or she is present. In the Chair's absence, the Deputy Chair is to preside.
(3) Five Members of the Payments System Board form a quorum at a meeting of the Payments System Board.
(4) Questions arising at a meeting of the Payments System Board are to be decided by a majority of the votes of the members present and voting.
(5) The member presiding at a meeting of the Payments System Board:
(a) has a deliberative vote; and
(b) if necessary, also has a casting vote.
The Payments System Board may regulate proceedings at its meetings as it considers appropriate. However, proceedings at a meeting must not be inconsistent with this Part.
Note: Section 33B of the Acts Interpretation Act 1901 contains further information about the ways in which members may participate in meetings.
25H Resolutions without meetings
A resolution is taken to have been passed at a meeting of the Payments System Board if:
(a) the Payments System Board has determined:
(i) that resolutions may be passed in accordance with this section; and
(ii) the method of indicating agreement with a resolution passed in accordance with this section; and
(b) without meeting, a majority of the members indicate agreement with the resolution in accordance with the method determined by the Payments System Board; and
(c) the majority would have constituted a quorum at a meeting of the Payments System Board; and
(d) all members were informed of the proposed resolution, or reasonable efforts were made to inform all members of the proposed resolution.
Division 3 -- Other administrative provisions
(1) A member of the Payments System Board is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the member is to be paid the remuneration that is prescribed.
(2) A member of the Payments System Board is to be paid the allowances that are prescribed.
(3) This section has effect subject to the Remuneration Tribunal Act 1973 .
The Payments System Board may grant leave of absence to another member of the Payments System Board on the terms and conditions that it determines.
A member of the Payments System Board (other than the Governor) may resign his or her appointment by giving a written resignation to:
(a) if he or she is the member referred to in paragraph 25A(b)--the Governor; or
(b) if he or she is the member referred to in paragraph 25A(c)--APRA's Chief Executive Officer; or
(c) if he or she is a member referred to in paragraph 25A(d)--the Governor - General.
25L Termination of appointment
(1) The following provisions apply to the member of the Payments System Board referred to in paragraph 25A(b):
(a) the Governor may, at any time, terminate the member's appointment;
(b) the member's appointment is terminated automatically if he or she ceases to be a member of the Reserve Bank Board or an officer of the Reserve Bank Service.
(2) The following provisions apply to the member of the Payments System Board referred to in paragraph 25A(c):
(a) APRA's Chief Executive Officer may, at any time, terminate the member's appointment;
(b) the member's appointment is terminated automatically if he or she ceases to be an APRA Board member or an APRA staff member.
(3) The Governor - General may terminate the appointment of a member of the Payments System Board referred to in paragraph 25A(d) for misbehaviour or physical or mental incapacity.
(4) The Governor - General must terminate the appointment of a member of the Payments System Board referred to in paragraph 25A(d) if:
(a) the member becomes permanently incapable of performing his or her duties; or
(b) the member:
(i) becomes bankrupt; or
(ii) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or
(iii) compounds with his or her creditors; or
(iv) makes an assignment of his or her remuneration for the benefit of his or her creditors; or
(c) is absent, except on leave of absence granted by the Payments System Board, from:
(i) 2 or more consecutive meetings of the Payments System Board; or
(ii) 3 or more meetings of the Payments System Board in any period of 12 months; or
(d) fails to comply with his or her obligations under section 21 of the Commonwealth Authorities and Companies Act 1997 .
49 Subsections 29(2) and 30(1)
Before "Board" (wherever occurring), insert "Reserve Bank".
50 Section 31
Repeal the section.
51 Section 37
Omit "bank", substitute "Bank".
52 Section 35
Omit "or Fifty dollars", substitute ", Fifty dollars or One hundred dollars".
53 Subsection 44(1)
Omit "10 penalty units", substitute "50 penalty units".
54 Section 45
Repeal the section.
55 Subsection 79A(1) (paragraph (a) of the definition of officer )
Omit "a Deputy Governor", substitute "the Deputy Governor".
56 Subsection 79A(1) (paragraph (a) of the definition of officer )
Before "Board", insert "Reserve Bank".
57 Subsection 79A(1) (after paragraph (a) of the definition of officer )
Insert:
(aa) a member of the Payments System Board; or
58 Subsection 79A(1) (definition of protected document )
Omit "the Banks (Shareholdings) Act 1972 ", substitute "the Payment Systems (Regulation) Act 1998 , the Payment Systems and Netting Act 1998 , the repealed Banks (Shareholdings) Act 1972 ".
59 Subsection 79A(1) (definition of protected information )
Omit "the Banks (Shareholdings) Act 1972 ", substitute "the Payment Systems (Regulation) Act 1998 , the Payment Systems and Netting Act 1998 , the repealed Banks (Shareholdings) Act 1972 ".
60 Subsection 79A(2)
Omit "the Banks (Shareholdings) Act 1972 ", substitute "the Payment Systems (Regulation) Act 1998 , the Payment Systems and Netting Act 1998 , the repealed Banks (Shareholdings) Act 1972 ".
61 Paragraph 79A(5)(b)
Omit "a Deputy Governor", substitute "the Deputy Governor".
62 Paragraph 79A(6)(a)
Omit "a Deputy Governor", substitute "the Deputy Governor".
63 Paragraph 79A(6)(a)
Before "Board", insert "Reserve Bank".
64 After paragraph 79A(6)(a)
Insert:
(aa) a member of the Payments System Board; or
65 Subsection 79A(8)
Omit "the Banks (Shareholdings) Act 1972 ", substitute "the Payment Systems (Regulation) Act 1998 , the Payment Systems and Netting Act 1998 , the repealed Banks (Shareholdings) Act 1972 ".
66 Section 81
Repeal the section.
67 Section 85
Add at the end:
(2) The Bank's seal is to be kept in such custody as the Reserve Bank Board directs, and is not to be used except as authorised by the Reserve Bank Board.
Note: The heading to section 85 is replaced by the heading " The Reserve Bank's seal ".
68 Section 89
Omit "$100", substitute "10 penalty units".