New norms for national payment systems

Mumbai: In revised criteria for national payment systems, the Reserve Bank of India (RBI) on Wednesday said all licensed banks will need a minimum CRAR of 9%, net NPAs below 5% and minimum net worth of R25 crore in the centralised payment systems. With a view to strengthening the risk management framework, as also to facilitate wider access to payment systems, the Reserve Bank of India had constituted a working group to review of the existing access criteria guidelines. With these eligibility the banks can Real Time Gross Settlement (RTGS) System, National Electronic Fund Transfer (NEFT) system and National Electronic Clearing Service (NECS). According to the notification, RBI mandates two sets of access criteria- one for centralised payment systems and the other for decentralised payment systems. While for decentralised payment systems such as clearing houses at MICR centres and Electronic Clearing Service (ECS) including the Regional Electronic Clearing Service (RECS), the access criteria will need a minimum CRAR of 9% and net NPAs below 5%. The revised access criteria will come into effect from October 1, 2011. However, the present relaxation granted to state cooperative banks and the district central cooperative banks and post office saving banks in membership to clearing house at MICR centres will continue. Unlicensed banks can continue to participate in the decentralised payment systems as sub-members.

FE