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

Reserve Bank has issued guidelines on ‘on tap’ authorisation of payment systems, including minimum net worth 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).

For entities desirous to function, operate, or provide platforms for BBPOU, the RBI said they should have a 100 crore rupees net worth and should be maintained at all times. In the case of TReDS, the minimum paid-up equity capital should be 25 crore rupees. The minimum net worth for entities desirous of entering the WLA segment should be 100 crore rupees.

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