RBI allows card issuers, white label ATMs to take direct membership in CPS

The 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 systems (CPS). 

The 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. 

“This 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