RBI allows card network, wallet to access RTGS, NEFT
The Reserve Bank of India (RBI) decided to allow payment system providers, prepaid card issuers, card networks and white label ATM operators to access their centralized payment systems (CPS), such as Real Time Gross Settlement (RTGS) and National Electronic Fund have taken. Transfer (NEFT) system. This will be the first phase of the plan to bring non-banks on a single platform.
In April, the RBI had said that it would encourage participation of non-banks in a phased manner in the Centralized Payment System (CPS) – RTGS and NEFT system operated by the Reserve Bank of India.
Direct access to CPS for non-banks reduces the overall risk in the payments ecosystem. It also brings benefits for non-banks such as reduction in cost of payment, reducing dependence on banks, reducing time taken to complete payments, eliminating uncertainty in finality of payments as central bank among others. The settlement is done in money.
The risk of failure or delay in execution of fund transfers can also be avoided when transactions are initiated and processed directly by non-bank entities.
“On a review of the existing arrangements and after detailed discussions with payment system providers (PSPs), it is advised that, in the first phase, authorized non-bank PSPs, such as PPI issuers, card networks and white label ATM operators will be eligible. to participate in the CPS as direct members,” it said in a circular.
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