The Reserve Bank has appointed an internal candidate to replace Dr Tony Richards in the pivotal role leading the payments policy department.

Ellis Connolly, a 20-year veteran of the central bank, will take the reins of the department on 20 December.

Mr Connolly is a law and economics graduate from the University of Technology, Sydney and holds a masters in public administration from the Harvard Kennedy School.

He is currently deputy head of financial markets infrastructure in the payments department.

In this role he is responsible for supervision of systemically important clearing and settlement facilities and payment systems operating in Australia.

Connolly enters the new role at a sensitive moment in the history of the RBA’s Payments System Board, which has drawn criticism from the government and small business groups for not moving more swiftly to help embed innovations such as least cost routing in the payments sector.

The PSB has also come under fire for diluting its longstanding commitment to the provisioning of multi-network debit cards in the banking system. 

In a press release issued yesterday the RBA included “resolving competition and efficiency issues in the payments system” as a strategic priority for the Bank.

In the new role Connolly will report to Assistant Governor, Michele Bullock.

“Ellis brings a wealth of experience in regulation, the operation of markets and economics,” Bullock said.

“He is a strong leader with a high level of skill in analysis and strategic thinking.“His experience will be important as we pursue strategic priorities in payments policy.”