RBI to adjust non-bank payments aggregators

The Reserve Bank will from now on adjust non-bank bills aggregators. Besides, present non-bank PAs will be required to submit application seeking for authorisation on or before June, 30, 2021.

In its "Oversight Framework for Financial Market Infrastructures and Retail Payment Systems" launched on Saturday, the RBI stated: "With a view to shield the hobbies of the clients and users and to make sure that the payments made by the intermediaries using digital or dig ital or online price modes were duly accounted for with the aid of the intermediaries receiving such payments and transmitted to the bills of the merchants or t o comparable different entities, positive suggestions had been issued to banks and fee machine operators for addressing a few factors of the functioning of intermediaries."

As such, RBI stated that those entities had been not subjected to direct policies for outsourcing arrangements had been made relevant to them.
"Based on the comments received on discussion paper and taking into a ccount the important features of the intermediaries in the online bills s pace as also retaining in view their role vis-a-vis coping with funds, it was determined to (a) regulate in entirety the activities of PAs, and (b) offer baseline era-related suggestions to PGs.

"Accordingly, the RBI shall alter and supervise non-financial institution PAs and t he present non-financial institution PAs are also required to submit application seeking for authorisation on or before June 30, 2021. On the alternative hand, the PGs shall be considered as technology carriers or outsourcing partners of banks or non-banks, as the case can be and have been prescribed to put in area certain baseline technology related cyber protection controls," the RBI stated.

The latest report for FMIs (Financial Market Infrastructures) and RPSs has been up to date to comprise the supervisory framework for the fee device entities.

"This report, through improving supervisory transparency and disclosure, could enable better regulatory compliance by way of payment systems operators, and decorate customer awareness, ultimately contributing to the protection and balance of our charge structures," the RBI said in the statement.