The Reserve Bank of India (RBI) has issued instructions to non-bank PSOs (authorised to operate any payment system) to seek its prior approval of RBI in cases of takeover or acquisition of control, which may or may not result in change of management. This also includes the sale or transfer of payment activity to an entity not authorised for undertaking a similar activity.
“The non-bank PSOs shall inform RBI within 15 calendar days in the cases of change in management/directors, sale/ transfer of payment activity to an entity authorised for undertaking similar activity,” the RBI said in a circular.
This directive issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and has come into effect immediately.
RBI said after obtaining its approval, the entity needs to issue a public notice giving at least 15 calendar days before effecting the changes.
“Such public notice shall be given either separately by the authorised non-bank PSO and the buyer/acquirer bank/non-bank, or jointly by them. The public notice shall indicate the intention and reasons for such changes, particulars of the entities concerned, etc.,” the notification said.
