RBI issues guidelines on ‘on tap’ authorisation on payment systems

Economy


Mumbai: The RBI on Tuesday issued guidelines on ‘on tap’ authorisation of payment systems, including minimum networth criteria for different players, with an aim to encourage innovation and competition. In a circular, the RBI said 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).

“The payment system operators should ensure interoperability among different retail payment systems,” it said and added the authorisation would be given based on merits of the proposal, and RBI’s assessment of potential for additional entities in that segment.

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.

Loading...

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 Bharat Bill Payment System (BBPS) is an interoperable platform for repetitive bill payments, and currently covers five segments — direct-to-home (DTH), electricity, gas, telecom, and water bills.

TReDS scheme is to facilitate financing of invoices and bills of MSMEs drawn on corporate buyers by way of discounting by financiers. White Label ATMs are set up by non-bank entities.

Earlier in January this year, the Reserve Bank of India had released a policy paper on authorisation of new retail payment systems.



Source link

Articles You May Like

What we know about Trump’s $200 to help with Medicare drug costs
What could make Congress provide more financial aid
Dow futures jump 200 points continuing rebound from September sell-off; Nike shares rise
View: In the post-Covid world, digital success will be defined by customer experience
FSSAI mulling making fortification of edible oil with vitamins A, D mandatory

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading...