RBI Access for Non-banks to Centralised Payment Systems

The Reserve Bank of India (RBI) has decided to allow non-bank payment system providers (PSPs), including prepaid payment instruments (PPI) issuers like mobile wallets, card networks and white label ATM operators to participate in the Centralised Processing System (CPS) as direct members.
Centralised Payment Systems (CPS) in India are Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems, both owned and operated by Reserve Bank

Meaning of Direct Access to CPS

Allotment of a separate Indian Financial System Code (IFSC).
Opening a Current Account with the Reserve Bank in its core banking system (e-Kuber).
Maintaining a settlement account with the Reserve Bank.
Membership of Indian Financial Network (INFINET)
Use of Structured Financial Messaging System (SFMS) to communicate with CPS.

Benefits of Direct Access

Direct access for non-banks to CPS lowers the overall risk in the payments 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, eliminating the uncertainty in finality of the payments as the settlement is carried out in central bank money, etc.
The risk of failure or delay in execution of fund transfers can also be avoided when the transactions are directly initiated and processed by the non-bank entities.