RBI opens up RTGS, NEFT to non-banks in phases

Context

The Reserve Bank of India (RBI) allowed authorized non-bank payment system providers (PSPs) to participate in centralized payment systems (CPS), such as real-time gross settlement (RTGS) and national electronic fund transfer (NEFT), as direct members.

What is PSPs?

• PSPs include prepaid payment instrument (PPI) issuers, card networks, white label ATM (WLA) operators and trade receivables discounting system (TReDS) platforms.

What is centralized payment system (CPS)?

• It means that a central authority is in control of the data and functions of the said platform.
• Component:Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) system.
  • Both owned and operated by the Reserve Bank.