The Payments System Board of the Reserve Bank has decided in principle to seek removal of the current specialist credit card institution (SCCI) framework, administered by the Australian Prudential Regulation Authority (APRA).

The change will occur in conjunction with the repeal of Regulation 4 of the Banking Regulations 1966 which currently define card card issuing and credit card acquiring as banking business which requires APRA approval. The Bank will liaise with APRA and the Commonwealth Treasury on any required changes.

The Bank expects that the variations should become effective later in the year.

The proposed change is expected to increase the number of credit card institutions.