The Reserve Bank of India (RBI) has set forth guidelines for “on tap” authorization for various payment systems, including the Bharat Bill Payment Operating Unit (BBPOU), Trade Receivables Discounting System (TReDS) and White Label ATMs (WLAs).
The Economic Times is reporting that the guidelines include the minimum amount of net worth required, among other guidelines, in an attempt to foster innovation and competition.
“The payment system operators should ensure interoperability among different retail payment systems,” the bank said, adding that authorization would be given based on the proposal and on how the bank assessed the potential of its place in the financial segment.
In order for an entity to function, use or provide platforms for BBPOU, the organization would be required to have a net worth of Rs 100 crore, which must be maintained for the duration. For TReDS, there would have to be a minimum of Rs 25 crore in equity capital. The WLA segment minimum would be Rs 100 crore.
The Bharat Bill Payment System (BBPS) is intended to be used for scheduled bill payments, covering things like electricity, gas and water. White-Label ATMs are facilitated by non-banking organizations.
In other India banking news, RBI Governor Shaktikanta Das is meeting with bank execs in the public sector on Tuesday (Oct. 15) in an effort to help push policy rates. LiveMint is reporting that Das will discuss the transmission of banks’ repo rate cuts into lending rates, including stressed assets and credit growth.
The bankers met with Finance Minister Nirmala Sitharaman on Monday (Oct. 14). “While the meeting with the finance minister focused largely on credit growth and the micro, small and medium enterprise (MSME) segment, the governor will take stock of the lending rate scenario and stressed assets,” one of the bankers said.