APRA (Australian Prudential Regulation Authority) introduced the RADI licence as a phased approach to licensing. A similar ‘L plates’ type system had been introduced successfully in the UK, and means that start-up banking licence applicants have the time to develop the robust systems and processes needed to obtain a full ADI (‘authorised deposit-taking institution’ or bank). You can read and download their information paper on this at ADI Licensing: Restricted ADI Framework 4 May 2018. Restricted ADIs can conduct limited, lower risk banking without having to comply with the full regulations or prudential framework for an ADI. During this period, any deposits with Xinja are protected in the same way that all deposits with Australian banks are protected - by the Federal Government’s Financial Claims Scheme. For more information click here!
Articles in this section
- When will Xinja get its full banking licence?
- When will Xinja get its banking licence?
- What's an Authorised Deposit-taking Institution (ADI)?
- What’s a restricted banking licence?
- What's a Restricted Authorised Deposit-taking Institution (RADI)?
- Why the name 'Xinja'?
- What is Xinja?
- Is Xinja a bank?
- Who owns Xinja?
- Who is behind Xinja?