In a move to popularise electronic payment system, the Reserve Bank of India (RBI), on Monday, allowed all licensed banks, including urban co-operative banks, State co-operative banks and district central cooperative banks, to transfer funds through the centralised electronic payment system as sub-members. These banks would participate in the centralised payment systems, Real Time Gross Settlement System (RTGS), and the National Electronic Funds Transfer (NEFT), through their sponsor bank, which is a direct member of this system, the RBI said in a notification to all banks.
“This would be an alternative mechanism to all licensed banks, which have the technological capabilities but are not participating in centralised payment systems on account of either not meeting the access criteria or because of cost considerations,” the RBI said. There is no restriction on the number of sub-members a sponsor bank could sponsor.
“The charges for customer transactions of sub-members cannot exceed the charges applicable to customers of sponsor-banks of the centralised payment system,” the RBI added.
ADVERTISEMENT