Assessment of the Reserve Bank Information and Transfer System (RITS)

Why It Matters

The partial compliance highlights governance and risk gaps that could affect the stability of Australia’s critical payment infrastructure, prompting accelerated reforms and heightened supervisory focus.

Key Takeaways

• RITS met all PFMI standards except governance and risk frameworks
• Governance rating dropped to “partly observed” due to delayed enhancements
• Risk and operational risk frameworks remain only partially compliant
• RBA must accelerate reforms before the March 2028 assessment
• Payments Policy Department will provide regular progress updates

Pulse Analysis

The Reserve Bank of Australia’s real‑time gross settlement system, RITS, underpins the nation’s payment infrastructure, handling high‑value interbank transfers in real time. Every two years the Payments Policy Department conducts a formal assessment against the Principles for Financial Market Infrastructures (PFMI), a global benchmark for safety and efficiency. The 2026 assessment, released on 19 June, found RITS fully compliant with all PFMI elements as of 31 March 2026, confirming its core resilience and operational reliability. Its uninterrupted operation is essential for liquidity management and settlement finality across Australian banks.

However, the review flagged three areas as only partially observed: governance, the comprehensive risk‑management framework, and operational risk. The governance rating slipped from “observed” to “partly observed” because RITS‑specific governance enhancements have progressed more slowly than anticipated, especially amid a tougher external risk environment. The board expects clearer accountability structures, enhanced risk‑ownership policies, and upgraded incident‑response protocols. While the risk‑management and operational risk frameworks remain unchanged from the 2024 assessment, the RBA acknowledges the need for accelerated implementation to close these gaps before the next detailed review.

The Payments System Board has set a clear deadline: key improvements must be embedded before the March 2028 detailed assessment. Ongoing monitoring will be delivered through regular updates from the Payments Policy Department, giving market participants visibility into remediation progress. Failure to meet the 2028 milestones could trigger tighter supervisory measures or penalties, prompting participants to reassess contingency plans. For banks, clearing houses, and other users of RITS, the accelerated timeline signals heightened scrutiny but also reinforces confidence that Australia’s critical payment backbone will meet international standards, supporting stability in domestic and cross‑border settlements.