Mobile wallets, card networks, white label ATM operators allowed to affix RBI’s CPS

The Reserve Bank of India (RBI) has determined to permit non-bank cost system suppliers (PSPs), together with pay as you go cost devices (PPI) issuers like cellular wallets, card networks and white label ATM operators to take part within the Centralised Processing System (CPS) as direct members.
The RBI transfer — first indicated in April 2021 — means allotment of a separate Indian Financial System Code (IFSC) to non-banks, opening a present account with the RBI in its core banking system (e-Kuber) and sustaining a settlement account with the RBI. It can even imply membership of Indian Financial Network (INFINET) and use of Structured Financial Messaging System (SFMS) to speak with CPS.
According to the RBI, direct entry for non-banks to CPS lowers the general threat within the funds ecosystem. “It also brings advantages to non-banks like reduction in cost of payments, minimising dependence on banks, reducing the time taken for completing payments,” it stated. The RBI stated the chance of failure or delay in execution of fund transfers can be prevented when the transactions are immediately initiated and processed by the non-bank entities. Non-bank entities shall switch funds from their Current Account to RTGS Settlement Account and vice versa in the course of the working hours.
CPS contains Real Time Gross Settlement and National Electronic Funds Transfer programs, owned and operated by the RBI.