Tuesday, January 25, 2022

RBI planning to implement interoperable cash transfer

The RBI is planning to allow business correspondents of one bank to offer payment services to other lenders for better efficiency and optimisation.

By: ENS Economic Bureau | Mumbai |
April 22, 2015 2:50:39 am
 Reserve Bank of India, cash deposit machines, RBI, National Payment Corporation, NPCI, interoperable cash transfer, business news The RBI is planning to allow business correspondents of one bank to offer payment services to other lenders for better efficiency and optimisation.

The Reserve Bank of India (RBI) is working on a proposal submitted by the National Payment Corporation (NPCI) to connect all cash deposit machines through the National Financial Switch (NFS).

This will make these machines interoperable and allow a customer of a particular bank to deposit cash into his account from any bank’s machine.

According to RBI Deputy Governor HR Khan, through core banking solution e-Kuber, the RBI is in the process of integrating the state and the Central governments’ receipts and payments. “The whole focus is that all the banks in different states will be joining the treasury computerisation and the e-receipts and e-payments will happen in a big way,” he said at the CII Banking Tech Summit here.

States are big players in the payment space and with the increase of states’ share in Central taxes, as recommended by the 14th Finance Commission, which nearly doubled the funds for states, the states business will increase, he said. “As you know more and more money is being transferred to states after the Finance Commission report, the state government business will increase substantially,” Khan said.

The RBI is planning to allow business correspondents of one bank to offer payment services to other lenders for better efficiency and optimisation. “We are now talking whether a business correspondent (BC) of one bank can do payment services for other banks, like ATMs are doing now. That convergence will provide efficiency and optimisation,” Khan said.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
Advertisement
Advertisement
Advertisement
X