Core capabilities are also supported by participants to ensure consistent user experiences, as well as build a solid foundation from which future innovation can grow.
While the rules for NPP participation prescribe these requirements, in June 2019 NPP Australia’s Board approved amendments to the NPP Regulations creating a framework to enable specific requirements to become mandatory and enforceable through non-compliance charges.
Similar to approaches taken by other payments schemes, such as card schemes, the ‘Mandatory Compliance Requirements’ are capabilities deemed by the NPPA Board as critical for the NPP’s performance and future success.
A Governance subcommittee of the Board comprising the independent directors and the CEO of NPP Australia, will determine non-compliance charges which may be payable by participating financial institutions in accordance with the approved framework.
The first Mandatory Compliance Requirements are likely to be designated by NPP Australia’s Board from October 2019, on advice from management, and will be published thereafter.
However, the mandatory compliance framework cannot be used to enforce timeframes for the roll-out and delivery of services from financial institutions yet to join the NPP.
NPP Australia can only impose requirements using its rule-making framework on those participating financial institutions who have agreed to be bound by NPP Australia’s rules. Further, it remains NPP Australia’s view that participating financial institutions must decide when to commence rolling out NPP-enabled services, taking into account their own customer needs and their individual operational requirements.
More than 65 million Australian financial institution accounts are NPP-enabled, which is more than 80% of available accounts and this number is only set to grow.