Mumbai: Reserve Bank of India (RBI) on Wednesday allows provider of non-bank payment systems (PSP) which is authorized to participate in centralized payment systems (CPS), such as the REAL-TIME (RTGS) completion and national electronic fund transfer (NEFT ) (Neft)), as a direct member.
PSPS includes the issuer of prepaid payment instruments (PPI), network cards, ATM operators (WLA) White labels and trade receivables (Treds) platforms.
In the notification issued on Wednesday, the RBI said that on the review of the remaining settings and after detailed discussions with PSP, it was suggested that, “in the first phase, the official PSP Non-Bank, Viz.
PPI publishers, network cards, and white label operators ATMs must be eligible to participate in CPS as direct members “.
In April 2021 monetary policy, the central bank has announced that it will encourage non-bank participation in the CPS-RTGS and NEFT systems operated by the RBI, gradually.
The central bank said direct access to non-banks against CPS reduced the overall risk in the payment ecosystem.
It also brings benefits for non-banks such as reducing payment costs, minimizing dependence on banks, reducing the time taken to complete payment, eliminating uncertainty in payment finals because settlement is carried out in central bank money, notice said.
The risk of failure or delay in the implementation of fund transfers can also be avoided when transactions begin directly and processed by non-bank entities, he said.