RTGS & NEFT membership to be allowed for non-banking payment institutions

RBI has recently said that National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) facilities will now be extended to non-bank payment institutions, expanding the reach of the payment systems.

RBI stated, “It is proposed to enable, in a phased manner, payment system operators, regulated by the Reserve Bank, to take direct membership in CPSs. This facility is expected to minimise settlement risk in the financial system and enhance the reach of digital financial services to all user segments.”