Non-bank PSOs need approval for takeover or sale of business, says RBI

After approval, a public notice of at least 15 calendar days needs to be given before making the changes

The Reserve Bank of India (RBI) said on Monday said non-bank payment system operators (PSOs) will need its approval in case of a takeover that may or may not result in a change of management and sale or transfer of payment activity to an entity not authorised for undertaking similar activity.

The transferor non-bank PSO has to submit an application to the Department of Payment and Settlement Systems (DPSS), Central Office (CO), RBI, along with the required documents for any takeovers.

And, in case of sale of payment activity to an entity not authorized to undertake similar activity, the seller PSO has