Small Finance Banks can join Payment Systems after getting licence: RBI
Updated: Dec 23, 2015 01:50:39pm
Mumbai, Dec 23 (KNN) The Reserve Bank of India has clarified that the entities that have already received in-principle approval for setting up payment banks and small finance banks can apply for membership to join payment system only after getting the final licence.
“…entities that have been granted in-principle approval by it for setting up Payments Banks and Small Finance Banks can apply to RBI for membership of any centralised/decentralised payment systems, including Bharat Bill Payment System (BBPS), after receiving the licence for commencement of business under Banking Regulation Act, 1949,” RBI said in a statement.
The clarification was required as the Reserve Bank had been receiving queries from such entities regarding the approval process for joining any centralised/decentralised payment systems, including participation in the BBPS as Bharat Bill Payment Operating Units (BBPOUs), the apex bank said in a statement.
RBI had invited applications for authorising BBPOUs in November 2015. The last date for receipt of applications was December 18, 2015. The Reserve Bank had announced the names of entities that were granted in-principle approval for setting up Payments Banks and Small Finance Banks on August 19, 2015 and September 16, 2015, respectively.
The “in-principle” approval granted to these entities is valid for 18 months during which time the applicants have to comply with all requirements stipulated by the Reserve Bank before grant of a licence for commencement of banking business would be considered by it. (KNN Bureau)
“…entities that have been granted in-principle approval by it for setting up Payments Banks and Small Finance Banks can apply to RBI for membership of any centralised/decentralised payment systems, including Bharat Bill Payment System (BBPS), after receiving the licence for commencement of business under Banking Regulation Act, 1949,” RBI said in a statement.
The clarification was required as the Reserve Bank had been receiving queries from such entities regarding the approval process for joining any centralised/decentralised payment systems, including participation in the BBPS as Bharat Bill Payment Operating Units (BBPOUs), the apex bank said in a statement.
RBI had invited applications for authorising BBPOUs in November 2015. The last date for receipt of applications was December 18, 2015. The Reserve Bank had announced the names of entities that were granted in-principle approval for setting up Payments Banks and Small Finance Banks on August 19, 2015 and September 16, 2015, respectively.
The “in-principle” approval granted to these entities is valid for 18 months during which time the applicants have to comply with all requirements stipulated by the Reserve Bank before grant of a licence for commencement of banking business would be considered by it. (KNN Bureau)
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