Religious charitable development funds (RCDFs) are funds that have been established to borrow and use money for religious and charitable purposes. This fundraising activity meets the definition of banking business under the Banking Act 1959 (Banking Act). RCDFs have historically been exempt from the requirement to be authorised under the Banking Act provided specified conditions are met as set out in the exemption order. The current exemption order is Banking exemption No. 1 of 2014.
This follows from the previous exemption, Banking exemption No. 1 of 2013, which expired in June 2014. This new exemption is for six months and is effective until 31 December 2014. RCDFs are subject to the same conditions as contained in the previous exemption order.
APRA consulted on proposed changes to the exemption order in 2013.