In news Recently, the RBI allowed non-bank Payment System Providers (PSPs) to participate in Centralised Payment Systems (CPS – RTGS and NEFT), as direct members.
Presently, only banks and select non-banks such as NABARD and Exim Bank are allowed access to CPS – NEFT and RTGS.
Key features
Allowed in a Phased Manner: In the first phase, PSPs such as Prepaid Payment Instruments (PPIs), card networks and White Label ATM (WLA) operators will be allowed access.
Separate IFSC to Non-Banks: It means allotment of a separate Indian Financial System Code (IFSC) to non-banks, opening a current account with the RBI in its core banking system (e-Kuber) and maintaining a settlement account with the RBI.
What is the Significance?
Direct access for non-banks to CPS lowers the overall risk in the payments ecosystem.