The Reserve Bank Of India (RBI) has issued guidelines on 'on tap' authorisation of payment systems. Reserve Bank of India had on January 21, 2019 released a policy paper on Authorisation of New Retail Payment Systems on its website and invited public comments there on. Comments / Feedback were received from individuals, public and private entities, institutions and industry associations. Based on the feedback received, it was announced in the Statement on Developmental and Regulatory Policies issued with Monetary Policy Statement dated August 07, 2019 that in order to benefit from diversification of risk as also to encourage innovation and competition, Reserve Bank will issue instructions on 'on tap' authorisation to entities desirous to function / operate / provide platforms for Bharat Bill Payment Operating Unit (BBPOU); Trade Receivables Discounting System (TReDS); and White Label ATMs (WLAs). Accordingly, it has been decided to offer on-tap authorisation for Bharat Bill Payment Operating Unit (BBPOU), Trade Receivables Discounting System (TReDS) and White Label ATMs (WLAs).
For entities desirous to function, operate, or provide platforms for BBPOU, the RBI said they should have a Rs 100 crore net worth and should be maintained at all times while in case of TReDS, the minimum paid up equity capital should be Rs 25 crore. The minimum net worth for entities desirous of entering the WLA segement should be Rs 100 crore. The central bank noted that the KYC requirements for retail payment systems shall be as per the Master Directions on Know Your Customer (KYC) issued by the Department of Banking Regulation (DBR), Reserve Bank of India. The payment system operators should ensure interoperability among different retail payment systems. The authorisation would be given based on (a) merits of the proposal, and (b) Reserve Bank's assessment of potential for additional entities in that segment.
Powered by Capital Market - Live News