RBI allows card issuers, white
label ATMs to take direct membership in CPS
Reserve Bank of India (RBI) said on Wednesday it will allow 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 itself, to take direct membership in central payment
central payment system constitutes real-time gross settlement (RTGS) and
national electronic fund transfer (NEFT). Only banks and few other players were
allowed to take direct membership of CPS.
facility is expected to minimise settlement risk in the financial system and
enhance the reach of digital financial services to all user segments , said RBI
governor Shaktikanta Das in a statement.
will allow payment banks to hold Rs 2 lakh as end day balance as opposed to Rs
1 lakh earlier. This has been done to further financial inclusion and to expand
the ability of payments banks to cater to the growing needs of their customers.
the governor in his statement said, since migration towards interoperability
has not been significant, hence the RBI has proposed to make interoperability
mandatory for full-KYC PPIs and for all payment acceptance infrastructure. And,
in order to incentivize them to migrate to full KYC, the RBI has increased the
current limit on the outstanding balance in such PPIs from Rs 1 lakh to Rs 2