RBI likely to give fintech, insurance cos access to NEFT and RTGS clearing systems

The RBI is taking under consideration the possibility of giving fintech and insurance companies, direct access to processing RTGS and NEFT transactions in line with global best practices. While citing the examples of the banking regulators of England and Switzerland, the RBI said in its Financial Stability Report that an easing of access to Centralised Payments Systems (CPS) to nonbanks in India will reduce costs and make market access to funds easier.
“The Reserve Bank will examine the case for increased participation of non-banks in CPS,” the RBI said in the biannual report. “Internationally, central banks are expanding access to payment systems by enabling various types of non-banks to become members.” Currently only standalone primary dealers, clearing corporations, central counterparties, retail payment system organizations, select financial institutions such as NABARD, Export-Import Bank of India (EXIM Bank) and Deposit Insurance and Credit Guarantee Corporation (DICGC) can access these systems.