Mumbai: reserve Bank of India (reserve Bank of India) on Wednesday allowed authorized non-bank payment system providers (PSPs) to participate in centralized payment system (CPS), such as real-time gross settlement (CPS),RTGS) and National Electronic Funds Transfer (NEFT), as direct members.
PSPs include Prepaid Payment Instrument (PPI) issuers, card networks, White Label ATMs (PPIs).WLA) operators and Trade Receivable Discount System (TReDS) platform.
In a notification issued on Wednesday, the RBI said that on a review of the existing arrangements and after detailed discussions with 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 a direct member.
In the monetary policy of April 2021, the central bank announced that it would encourage the participation of non-banks run by the RBI. CPS-RTGS and NEFT system, in a phased manner.
The central bank said that direct access to CPS for non-banks reduces the overall risk in the payments ecosystem.
It also brings benefits such as reduction in cost of payments to non-banks, reducing dependence on banks, reducing time taken to complete payments, eliminating uncertainty in finality of payments, the notification said. stated in. .
It added that 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.
PSPs include Prepaid Payment Instrument (PPI) issuers, card networks, White Label ATMs (PPIs).WLA) operators and Trade Receivable Discount System (TReDS) platform.
In a notification issued on Wednesday, the RBI said that on a review of the existing arrangements and after detailed discussions with 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 a direct member.
In the monetary policy of April 2021, the central bank announced that it would encourage the participation of non-banks run by the RBI. CPS-RTGS and NEFT system, in a phased manner.
The central bank said that direct access to CPS for non-banks reduces the overall risk in the payments ecosystem.
It also brings benefits such as reduction in cost of payments to non-banks, reducing dependence on banks, reducing time taken to complete payments, eliminating uncertainty in finality of payments, the notification said. stated in. .
It added that 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.
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