In a bid to bring inter-operability into the usage of prepaid payment instruments, the RBI is going to put in place a revised framework, which is in line with the Vision for Payment and Settlement Systems in the country.
In a bid to bring inter-operability into the usage of prepaid payment instruments (PPIs), the Reserve Bank is going to put in place a revised framework, which is in line with the Vision for Payment and Settlement Systems in the country.
In its monetary policy statement issued today, the RBI said that it had issued guidelines for issuance and operations of prepaid payment instruments in April 2009 in order to foster an orderly development of the PPI ecosystem. In the light of the experience gained, a draft of Master Directions on the subject was placed in the public domain for comments on March 20, 2017.
“The feedback received has been examined and it has been decided to rationalise the operational guidelines with a view to encouraging competition and innovation, and strengthening safety and security of operations, besides improving customer grievance redressal mechanisms,” it said.
Now in line with the Vision for Payment and Settlement Systems in the country, the revised framework will pave the way for bringing inter-operability into usage of PPIs. “Inter-operability amongst KYC-compliant PPIs shall be implemented within six months of the date of issuance of the revised Master Directions, which will be issued within a week, i.e., by October 11, 2017,” the RBI said.
The apex bank is also going to introduce a framework for authorising electronic trading platforms (ETP). It may be noted that trading on electronic platforms is being encouraged across the world as it enhances pricing transparency, processing efficiency and risk control. It also enables better market surveillance and, therefore, discourages market abuse and unfair trading practices.
The Reserve Bank will put in place a framework for authorisation of electronic trading platforms (ETP) for financial market instruments regulated by it. “The framework shall inter alia include detailed eligibility criteria, technology requirements and reporting standards. While all new electronic trading platforms would be required to obtain authorisation under this framework, existing platforms would also be required to obtain post facto authorisation from the Reserve Bank,” it said.
A draft framework in this regard will be placed on the website of the Reserve Bank for public feedback by end-October 2017.