Document ID: chunk:federal_register_of_legislation:F2023L01225:body:0:p13
Version: federal_register_of_legislation:F2023L01225
Segment Type: other
Provision Reference: 
Character Range: 37228–40241

transactions must not be revoked because of the real-time nature of these transactions.

    17.         APRA would instruct the statutory manager, or request the liquidator, to close the payments functions associated with a declared ADI's electronic banking facilities.

    18.         VISA and MasterCard debit card transactions must not be revoked due to the real-time nature of these transactions. The bank identifier numbers for cards issued by the declared ADI must be de-activated to ensure that no further transactions are able to take place following the withdrawal of the declared ADI from the payment system.

Accrued interest
    19.         An ADI must calculate accrued interest and pay interest at the relevant interest rate applicable to the account in question, rather than a break rate that might apply if an account-holder withdraws funds before a certain time or subject to other restrictions. An ADI must ensure that its accounting systems are able to apply interest at the contractual rate applicable to each account in the event of the ADI failing.

    20.         For the purpose of testing SCV data, it will not be necessary for an ADI, in calculating the end-of-day balance, to run an accrual to determine interest, fees and charges applicable to an account, unless the accrual is normally run on a daily basis or where the reporting date selected by APRA coincides with month-end. An end-of-day figure based on the principal amounts held in each protected account will be sufficient for the initial end-of-day balance for testing purposes.

Treatment of unsettled payments
    21.         The ADI would be suspended from the payments system immediately following a declaration. Failure-to-settle procedures would be applied in each payment system in which the ADI was a participant.

    22.         AusPayNet rules distinguish between direct participants and indirect participants. The former assume responsibility for settlement of payments obligations drawn on indirect participants as well as their own settlement obligations. In the event that an indirect participant fails, its representative direct participant remains responsible for settling the indirect participant's obligations which have been exchanged with other direct participants. In these circumstances, credits posted (or to be posted) to accounts at a solvent ADI, and associated debits posted to accounts at the declared ADI, would stand even where the indirect participant had not settled for the resultant obligations with its representative direct participant (subject to the legitimate reversal of direct credits and the possibility of direct debits being dishonoured by the declared ADI). Since some ADIs are direct participants in one or more AusPayNet payment systems while participating indirectly in others, the treatment of customer accounts may vary by payment instrument.

Attachment C

This Attachment sets out the principles that an ADI must use in its calculations to meet its payment and