Document ID: chunk:federal_register_of_legislation:F2023L01225:body:0:p12
Version: federal_register_of_legislation:F2023L01225
Segment Type: other
Provision Reference: 
Character Range: 34679–37526

exchanged, but not yet settled, prior to the ADI's withdrawal must be treated as follows:

       (a)          direct entry credits received from a declared ADI would be returned to the declared ADI if they had not already been posted to accounts at another ADI. Unsettled direct entry credits that had been posted to accounts at another ADI would stand. To ensure consistent treatment between accounts at a declared ADI and all other ADIs, the declared ADI would need to explicitly identify which direct entry items had been posted by another ADI and which had not;

       (b)          direct entry debits received by a declared ADI would be treated as if they had not been exchanged (and any account postings would be reversed by the receiving ADI as well as the declared ADI); and

       (c)          all direct entry items exchanged on the day of declaration, which require settlement payment from another ADI to the declared ADI, are to be processed as normal. As a result, the declared ADI would need to post incoming direct entry credit payments from other ADIs and include these transactions in its end-of-day aggregate deposit balance. The same would apply to direct debits the declared ADI had exchanged with other ADIs.

    14.         The exchange of BPAY items will cease from the time at which an ADI is withdrawn from the payments system. Where items were exchanged prior to this time, then:

       (a)          unsettled BPAY credits received from the declared ADI would be returned to the declared ADI if they had not already been posted to accounts at another ADI.  The declared ADI would reverse the related payer account postings; and

       (b)          unsettled BPAY credits that had been posted to accounts at another ADI would stand.

    To ensure consistent treatment between accounts at a declared ADI and other ADIs, the declared ADI must be able to identify which BPAY payments had been processed by another ADI and which had not.

    15.         Real-time gross settlement (RTGS) payments are settled at the time they are exchanged. As a result, RTGS payments exchanged between a declared ADI and another ADI are irrevocable and these transactions must be included in the end-of-day balance. Account postings for RTGS payments that were initiated, but not settled, must be reversed by the declared ADI or other ADI, as applicable.

    16.         A declared ADI's ATM network and EFTPOS channels must be closed from the time that the ADI is withdrawn from the payments system. Unsettled ATM and EFTPOS 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