Recently on 15th October 2019, RBI issued guidelines on “ On-tap Authorisation of Payment Systems.” The main aim behind the introduction of these guidelines is diversification of risk and to encourage innovation and competition. Under this, RBI described minimum net-worth criteria for retail payment systems. Earlier, on 21st January 2019 RBI released policy paper on Authorisation of New Retail Payment Systems, stating liberal entry points under this segment for new entrants. As we know for creation of a reliable payment ecosystem, non-banks are playing vital role.
Now, we are going to
underline the highlights of the circular;
offering of On-tap Authorisation
RBI is going to offer on-tap authorisation to the below mentioned:
Bharat Bill Payment Operating Unit
is a platform for recurring bill payments. At present, BBPOU covers five
segments, such as electricity bill, telecom bill, direct-to-home (DTH), gas,
and water bills.
Trade Receivables Discounting System
It facilitates the financing of MSME invoices and bills drawn on corporate buyers by way of discounting by financiers. Under this participants may take benefit of uninterrupted services for discharging functions.
NBFC – Factors can register themselves as the TReDS mechanism as well as they can register themselves as the financers on the TReDS mechanism. Not only for MSMEs, but it is also an excellent opportunity for NBFCs as they can explore new business segments.
Soniya is dedicated professional having flair for reading & writing to keep herself updated with the latest economical developments. In a short span of 4 years as a professional she has worked on projects related to IPR & Corporate laws which have given her diversity in work and a chance to blend her subject knowledge with its real time implementation, thus enhancing her skills.