Money & Banking

Permitting non-banks to participate in CPS to boost digital payments: PCI

Our Bureau Mumbai | Updated on July 31, 2021

Vishwas Patel, Chairman, Payments Council of India

The industry body said it would trigger financial innovations

Permitting non-banks to participate in centralised payments systems like RTGS and NEFT will give a further boost to digital payments, the Payments Council of India said on Friday.

Welcoming the Reserve Bank of India’s recent move to allow authorised non-bank payment system providers to participate in CPS, the industry body said it would also trigger financial innovations and enhance customer protection.

Read also: RBI opens up RTGS, NEFT to non-banks in phases

“The industry will work towards implementation of the RBI notification. This move definitely indicates a bright way forward for digital payments instruments in the country,” said Vishwas Patel, Chairman, Payments Council of India and Director, Infibeam Avenues.

The RBI had on July 28 said authorised non-banks payment system providers, including prepaid payment issuers, card networks and white label ATM operators, will be eligible to participate in CPS in the first phase.

Mahendra Nerurkar, VP and CEO, Amazon Pay India and Co-Chair, PPI Committee, PCI, said: “We would like to express our sincere thanks to the central bank for allowing Prepaid Payment Instrument Issuers access to centralised payment systems. This will assist to strengthen digital payments and bring more innovation, as well as improve customer protection and efficiency.”

PCI in the statement said that ever since the announcement of the grant to access the CPS to the non-banking digital payments industry in the Statement on Developmental and Regulatory Policies in April this year, the industry was looking forward to the instructions by RBI for the implementation.

At present, very few select non-banks have been approved to participate in CPS so far. Banks have been providing the services to non-banks for their payment and settlement needs.

Published on July 30, 2021

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