RBI extends NEFT, RTGS money transfer facility beyond banks. Details here

The RBI's proposal to extend NEFT and RTGS money transfer facilities will be a big boost to digital payment services. Here is all you need to know:

The Reserve Bank of India on Wednesday said that National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) facilities will be extended to non-bank payment system operators. As of now, only banks were allowed to use RTGS and NEFT payment facilities. With RBI’s announcement, these money transfer systems will be extended to Prepaid Payment Instrument (PPI) issuers, card networks, white-label ATM operators and Trade Receivables Discounting System (TReDS) platforms. “Membership to the RBI-operated Centralised Payment Systems (CPSs) RTGS and NEFT is currently limited to banks, with a few exceptions. It is now proposed to enable non-bank payment system operators like Prepaid Payment Instrument (PPI) issuers, card networks, White label ATM operators and Trade Receivables Discounting System (TReDS) platforms regulated by the Reserve Bank, to take direct membership in CPSs,” said RBI Governor Shaktikanta Das.