A report of the working group of the Reserve Bank of India on preparing guidelines for access to payment systems has recommended that the membership to clearing houses at the MICR centres be confined to licensed banks meeting specific financial criteria.
The criteria are CRAR 9%, net NPA of less than 10 %, no default in maintenance of CRR and SLR during the past one year; and net profit in at least one of the preceding two years. The report further states that, all members would be required to abide by the guidelines issued by the clearing houses on the technical specifications and infrastructure requirements.However, State Cooperative Banks (SCBs) may be permitted to be members without reference to the above criteria in view of their special status in the system.District Central Cooperative Banks (DCCBs) having networth of Rs.10 crore and a record of maintaining CRR and SLR without default for last one year may be extended direct membership of clearing house at MICR centres.The Regional Rural Banks may also be permitted to be members of the clearing houses at the MICR centres, keeping in view their special status in the system, subject to their having positive net-worth and not defaulting in maintenance of CRR and SLR for the past one year.
Entities which are presently members of clearing houses at the MICR centres, but ineligible to be member as per the proposed access criteria would have to conform to the prescribed norms within one year, failing which, membership would be downgraded to that of a sub-member. Such banks should, however, be barred with immediate effect, (subject to the minimum time required for alternate arrangements), from sponsoring any sub-members.
Also considering that a large number of co-operative banks with wide network of branches and good financial standing are ineligible for direct access, the panel that customers of such entities should also be able to avail RTGS services. Besides, the State Co-operative Banks which provide financial services to a bulk of the banks in co-operative sector, may be granted a special status.
Keeping these factors in view, the group has recommended the eligibility criteria for direct access to RTGS system through membership.
The norms are CRAR 9%, net NPA of less than 10 %, minimum net-worth of Rs.50 crore, no default in maintenance of CRR and SLR during the past one year; and net profit in at least one of the preceding two years.
In view of the rapidly evolving payment systems and emerging systemic risks due to probable failure of financially weak members it has become necessary to put in place appropriate eligibility criteria. At present there are 1064 clearing houses in the country and they have been functioning as per the model Uniform Regulations and Rules for Clearing Houses (URRBCH).