{"id":"F2008B00292","name":"Payment Systems (Regulation) Act 1998 - Exemption Notice for Certain Guaranteed Holders of Stored Value Under Section 25","slug":"payment-systems-regulation-act-1998-exemption-notice-for-certain-guaranteed-holders-of-stored-value-","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":73130,"registerId":"commonwealth-F2008B00292-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Payment Systems (Regulation) Act 1998 - Exemption Notice for Certain Guaranteed Holders of Stored Value Under Section 25","content":"|     | RESERVE BANK OF AUSTRALIAPayment Systems (Regulation) Act 1998Exemption Notice for Certain Guaranteed Holders of Stored ValueUnder Section 25 |\n| --- | --------------------------------------------------------------------------------------------------------------------------------------------- |\n\nThe Reserve Bank of Australia, under section 25 of the Payment Systems (Regulation) Act 1998 (“Act”), grants an exemption to the following class of corporations allowing each corporation in the class to be the holder of the stored value in respect of purchased payment facilities in the following class even though the corporation is not an authorised deposit-taking institution (within the meaning of the Banking Act 1959), and does not have an authority under section 23 of the Act that covers those facilities, where:\n\n(a) the class of corporations is constituted by corporations:\n\n(i) whose obligations in respect of a purchased payment facility described in paragraph (b) are guaranteed by:\n\n(A) an authorised deposit-taking institution (within the meaning of the Banking Act 1959); or\n\n(B) a Commonwealth, State or local government authority; and\n\n(ii) which are not the providers of purchased payment facilities in relation to which a determination has been made by the Australian Prudential Regulation Authority (\"APRA\") under regulation 3 of the Banking Regulations 1966; and\n\n(b) the class of facilities is constituted by facilities:\n\n(i) which do not fall within the scope of the exemption issued by the Reserve Bank of Australia pursuant to section 9(3) of the Act on 10 March 2004; and\n\n(ii) in relation to which a determination has not been made by APRA under regulation 3 of the Banking Regulations 1966.\n\nUnless the contrary intention appears, words used in this instrument have the same meaning as in the Act.\n\nSigned\n\n![](image.002.jpeg)\n\n1J Macfarlane  \nGovernor  \nReserve Bank of Australia\n\n| Date |     |\n| ---- | --- |","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The notice narrows the regulatory reach of the Act’s default requirement that holders be ADIs or hold a s23 authority by exempting specified non‑ADI holders whose obligations are guaranteed by an ADI or government authority. The exemption substitutes a guarantee‑and‑monitoring compliance model for the ADI/authorisation requirement, while APRA regulation‑3 determinations and the prior s9(3) exemption limit the notice’s coverage."},"complexity_factors":["Cross‑references to multiple instruments and bodies: Payment Systems (Regulation) Act 1998 (s25 and s9(3) exemption), Banking Act 1959 (definition of ADI), and Banking Regulations 1966 (regulation 3 determinations by APRA).","Conditional exemptions: relief depends on existence of a guarantor (ADI or government) and absence of APRA/regulatory determinations, creating binary but externally determined triggers.","Inter‑regulatory interaction: scope is co‑determined by the RBA (granting the exemption) and APRA (making regulation‑3 determinations), requiring coordination and monitoring.","Reliance on guarantees shifts compliance burden: affected corporations must secure and document guarantees rather than obtain ADI status, introducing contractual and verification tasks.","Ambiguity risks: the instrument adopts Act definitions and refers to prior RBA exemptions (10 March 2004) and APRA determinations without detailing verification or reporting procedures.","Scope exclusions: explicit carve‑outs (facilities covered by the 2004 s9(3) exemption or by APRA determinations) require careful factual classification of facilities and providers."],"plain_english_summary":"This Reserve Bank exemption (under section 25) permits certain corporations to hold stored value for purchased payment facilities without being an authorised deposit‑taking institution or holding a section 23 authority. The relief applies only where the corporation’s obligations are guaranteed by an authorised deposit‑taking institution or a Commonwealth, State or local government, and where APRA has not made a regulation‑3 determination and the facilities are not covered by the RBA’s 10 March 2004 section 9(3) exemption. RBA grants the exemption; affected firms must obtain guarantees and monitor APRA rulings."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument appears to be operating within its original intended scope. It is a targeted exemption under section 25 of the Act, which specifically empowers the RBA to exempt certain holders of stored value from the usual licensing requirements. The conditions (bank/government guarantee, exclusion of APRA-regulated facilities) align with the protective purpose of the parent Act. There is no evidence of scope creep or expansion beyond the original regulatory framework."},"complexity_factors":["Multiple nested conditions: the exemption applies only when both corporate criteria (paragraph a) AND facility criteria (paragraph b) are satisfied","Cross-references to three separate pieces of legislation: Payment Systems (Regulation) Act 1998, Banking Act 1959, and Banking Regulations 1966","Defined terms imported by reference ('authorised deposit-taking institution', 'purchased payment facilities') rather than defined in the instrument itself","Exception to an exception structure: the exemption applies to facilities NOT covered by the 2004 section 9(3) exemption and NOT subject to APRA determinations","Class-based drafting: creates categories of corporations and facilities rather than naming specific entities, requiring careful parsing of membership criteria"],"plain_english_summary":"This RBA exemption lets certain non-bank companies hold customer funds for prepaid or stored‑value products (e.g., gift cards, digital wallets) without being an authorised bank, provided a bank or government guarantee backs their obligations and APRA has not already classified those facilities as banking. It affects issuers and consumers by enabling fintech innovation and easing regulatory burden while preserving consumer protection through the required guarantee."}},"importantCases":[],"_links":{"self":"/api/acts/payment-systems-regulation-act-1998-exemption-notice-for-certain-guaranteed-holders-of-stored-value-","history":"/api/acts/payment-systems-regulation-act-1998-exemption-notice-for-certain-guaranteed-holders-of-stored-value-/history","analysis":"/api/acts/payment-systems-regulation-act-1998-exemption-notice-for-certain-guaranteed-holders-of-stored-value-/analysis","conflicts":"/api/acts/payment-systems-regulation-act-1998-exemption-notice-for-certain-guaranteed-holders-of-stored-value-/conflicts","importantCases":"/api/acts/payment-systems-regulation-act-1998-exemption-notice-for-certain-guaranteed-holders-of-stored-value-/important-cases","documents":"/api/acts/payment-systems-regulation-act-1998-exemption-notice-for-certain-guaranteed-holders-of-stored-value-/documents"}}