Non-Bank payment system operators will be allowed to provide NEFT, RTGS services: RBI

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Biznextindia : The Reserve Bank of India has decided to enable non-banking payment system operators to take direct membership in RBI-operated Centralized Payment Systems (CPSs) like  RTGS and NEFT. The move is expected to minimize settlement risk in the financial system and enhance the reach of digital financial services to all user segments, said RBI Governor Shaktkanta Das during his address on the first bi-monthly monetary policy statement of the 2021-22 financial year.

Currently only banks are members of the Centralized Payment Systems (CPSs). However, after this decision now non-bank payment system operators like Prepaid Payment Instrument (PPI) issuers, card networks, White label ATM operators and Trade Receivables Discounting System (TReDS) platforms regulated by the Reserve Bank can take membership of CPSs and provide services like RTGS and NEFT.

Interoperability of PPIs, Increase in Account Limit to ₹2 lakh

In another decision, the RBI has proposed to make interoperability mandatory for full-KYC PPIs and for all payment acceptance infrastructure. To incentivise the migration of PPIs to full-KYC, it is proposed to increase the current limit on outstanding balance in such PPIs from ₹1 lakh to ₹2 lakh.

RBI has also proposed to allow cash withdrawals for full-KYC PPIs of non-bank PPI issuers. This measure, in conjunction with the mandate for interoperability, will boost migration to full-KYC PPIs and would also complement the acceptance infrastructure in Tier III to VI centres.

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