New Delhi: The Reserve Bank of India (RBI) have decided to allow payment system provider, prepaid card issuers, card networks, and white label ATM operators access to its Centralised Payment Systems (CPS), such as real-time gross settlement (RTGS) and National Electronic Fund Transfer (NEFT) systems.
This will be the first phase of the plan to bring all the non-banks under the same platform. In April, RBI said it would encourage the participation of non-banks in a phased manner.
However, the direct access for the non-banks to CPS lowers the risk in total making it advantageous to non-banks like reduction in payment cost, minimizing dependence, reducing the time taken for completing payments, also enabling the uncertainty in final payments since the payment settlement is carried out in the central bank.
Further, all the non-banks under one platform will reduce the risk of payment failure or delay in execution or transactions directly initiated and processed by the bank entities.