The Reserve Bank of Australia (RBA) has released a risk assessment concerning the proposed decommissioning of the Bulk Electronic Clearing System (BECS), a primary system for account-to-account payments in Australia. The assessment indicates that the industry lacks a shared vision and has shown insufficient coordination, planning, and certainty regarding the transition process.

BECS facilitates essential transactions such as welfare, pension, salary, and bill payments. The RBA emphasizes that any disruption to these services could result in economic harm, necessitating an orderly and reliable transition to alternative systems.

The RBA's recommendations include defining a vision for future account-to-account payments in collaboration with the government and establishing a comprehensive transition plan. These steps are considered foundational by the RBA and should be prioritized by the industry to ensure a smooth changeover.

Assistant Governor (Financial System) Brad Jones highlighted the importance of having an orderly and well-coordinated change program. "As a serious disruption to account-to-account payments has the potential to undermine confidence in the financial system," he said, "any change program of this magnitude must be orderly and well-coordinated."

The RBA recognizes recent progress made by industry stakeholders towards meeting these recommendations. It will continue overseeing transition activities and supporting modernization efforts while ensuring public interest considerations are integrated into strategic objectives.

While BECS has served reliably for over 30 years, there is recognition that significant updates are needed. Alternatives like the New Payments Platform (NPP) may offer benefits for modernizing payment processes. The intention to phase out BECS was announced in 2023, with June 2030 identified as a target date for completion.

The Commonwealth Treasury's 2023 Strategic Plan supports an industry-led transition from BECS but acknowledges challenges related to migrating bulk payments from business and government sectors.

Governor Michele Bullock emphasized in her 2023 speech that setting an end date would help focus efforts on transitioning all BECS payments to newer systems. Assistant Governor Brad Jones reiterated concerns about insufficient coordination during his December 2024 speech.