RBI proposes to relax norms for new players' entry in retail payment

The Reserve Bank of India (RBI) Monday proposed to relax norms for entry of new players in the retail payment systems with a view to give a boost to innovation and competition.

The RBI has been issuing guidelines for various payment systems and grants authorisation to non-banks for setting up and operating payment systems.

Licensed banks also need to obtain specific permission from Reserve Bank for setting up and operating a payment system. At the end of 2018, there were 89 authorised non-bank Payment System Operators (PSOs).

The RBI's policy paper on 'Authorisation of New Retail Payment Systems' proposes a multi-pronged policy action for a more appropriate level of retail payment systems and operators.

With regard to entry point norms for entities, the paper said a judicious approach needs to be adopted with regard to networth criteria.

"For all payment systems it would be desirable that they have (a) physical presence in the country, (b) impeccable track record, and (c) are likely ..