Purpose
These directions are
issued for providing a framework, enabling Banks to apply for membership of
payment systems and to provide a set of requirements related to payment
systems.
General Guidelines
There will be two sets
of access criteria
·
centralised payment systems( RTGS, NEFT,etc.) and
·
decentralised payment systems (Clearing Houses- CTS, ECCS, etc).
Membership to the
centralised and decentralised payment systems will be open to all scheduled/
licensed banks. Unlicensed banks can participate as sub-members. Co-operative
societies cannot be members.
Notified institutions
like Post Office Savings Bank will be eligible for decentralised payment
systems.
Primary Dealers will be
eligible for RTGS membership. For clearing organisations/ PSPs and other
entities, the RBI would consider membership on a case-to-case basis.
Access criteria will be
reviewed once in two years.
Access Criteria
·
Minimum CRAR of 9% (as per the latest audited balance sheet);
·
Net NPAs below 5% (as per the latest audited balance sheet);
·
Minimum net-worth of Rs.25 crore;
·
Availability of CBS / centralised processing at applicant’s end;
·
Recommendation of the regulatory / supervisory department.
The recommendations of
the regulator/ supervisor will be obtained independently, and need not be
furnished at the time of application.
Continuation in payment
systems may be allowed on the recommendation of the regulator/ supervisor in
case of any deterioration in the financials below the thresholds indicated above.
For new banks, no
separate recommendation of the regulator/ supervisor would be obtained, if the
bank has submitted its application before starting to provide services as banks.
SECTION III
Guidelines for
membership to Centralised Payment Systems
Applications should be
submitted to Reserve Bank of India, Mumbai.
The application should
be in the prescribed format.
The entity on fulfilling
the access criteria would be eligible for opening a
·
current account,
·
Subsidiary General Ledger /Intra Day Liquidity SGL account,
·
Negotiated Dealing System-Order Matching membership with RBI
Entities already having
such accounts would need to mention the same while applying. Only RTGS members
will be eligible to join NEFT.
Entities not having
aforesaid accounts would need to apply at the time of application.
The operationalisation
of the current/SGL/IDL-SGL account, NDS-OM/CALL membership & INFINET
membership will be subject to the entity fulfilling the documentation and other
formalities.
Entities not seeking access
to centralised payment system but desirous of opening only a current account,
SGL/Constituent SGL (CSGL) account, NDS-OM/CALL membership need not approach
DPSS and can directly approach the concerned regional or central office of RBI.
The centralised payment
systems would be regulated by RTGS System Regulations, NEFT Procedure
Guidelines & other instructions issued by RBI.
Guidelines for
membership to Decentralised Payment Systems
Applications for
membership to decentralised payment systems should be submitted to the President
of the concerned clearing house.
The application should
be submitted in the prescribed format.
The admission of an
entity to a clearing house shall be subject to its fulfilling Uniform
Regulations and Rules for Bankers' Clearing House (URRBCH), guidelines and
instructions issued by RBI.
President of the
clearing house will seek the clearance of the Regional Office (RO) of the RBI
before granting membership.
The entity on fulfilling
the access criteria would be eligible for opening
·
current account with RBI
·
current account with settlement bank,
Operationalisation of
the current account will be subject to the entity fulfilling the documentation and
other formalities.
Banks which are already
members of the centralised payment systems will be eligible for automatic
membership of the decentralised payment systems across all clearing houses. Such
banks would have to apply to the President of the Clearing House for
operationalisation and will be subject to URRBCH.
Sub-membership facility
Sub-membership is an
alternate mechanism to all scheduled/ licensed banks which are not
participating in payment systems.
Centralised Payment
Systems: The
sub-member would participate in the centralised payment systems through
their sponsor bank which is a direct member. Sponsor bank has to ensure the
following:
Aspects relating to
operational feasibility, risk mitigation, fund settlement, collaterals, etc., are
to be taken care of by the sponsor bank before sponsoring.
The sponsor bank should have
a board approved risk management framework and a system of continuous
monitoring of risk management practices of sub-members.
The sponsor bank would
be responsible for sending/ receiving the transactions & messages on behalf
of their sub-members.
The settlement of
transactions of sub members would take place in the settlement accounts of the
sponsor bank. The sponsor bank will assume responsibility for the settlement of
the transactions of sub-members.
The sponsor bank should
ensure that their sub-members adhere to the guidelines of the centralised
payment systems.
Redressal of customer
complaints would be the responsibility of the sponsor bank. Sponsor bank should
ensure that the sub-members have a mechanism to resolve customer complaints as
per the guidelines of the centralised payment systems.
All disputes between the
sponsor bank and the sub-members will be handled bi-laterally amongst them.
Branches of sub-members
that are not under CBS shall be kept out of the centralised payment systems.
The sponsor bank should immediately
inform RBI of:
·
any involvement of its sub-members in any suspicious transactions,
frauds, etc.;
·
any of its sub-members resorting to any unfair practices;
·
any of its sub-members not adhering to the guidelines of the system.
The sponsor bank is not
required to take prior approval of the RBI for sponsoring or cessation of its
sub-members. However, it should immediately inform RBI of such action.
The charges for customer
transactions of sub-members cannot exceed the charges applicable to customers
of sponsor banks/direct members of the centralised payment systems viz., RTGS
and NEFT.
Decentralised Payment
Systems: The
sub-members would participate in the decentralised payment systems
through their sponsor bank subject to the of URRBCH
Review of Membership
Once an entity is
admitted as a member, it will generally continue to be a member so long as it
is
· permitted to accept
deposits or
· its participation is not
found to be detrimental to the functioning of the system
· its membership is not
suspended/ revoked/ terminated.
RBI will have the
authority to determine if a member can continue to participate in payment
systems.
Where concerns have been
expressed on the financial conditions of an entity, RBI could initiate measures
like limits on presentations by such entities in the clearing house. Such
limits would be decided in consultation with the concerned regulator/
supervisor/ President of the clearing house.
In the event of an
entity which has access to payment systems, being subsequently debarred from
the payment systems or downgraded, the continuation of other accounts/
membership will be decided by RBI separately.
Based on RBI Master Direction dated 17th January 2017. For
further clarification in the matter please refer www.rbi.org.in
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