The Reserve Bank of India (RBI) has mandated that non-bank payment system operators (PSO) will need to obtain its approval before sanctioning any acquisition or a takeover in a notification uploaded on July 4, 2022. These entities will also have to obtain RBI’s approval in case of a sale or a transfer of payment activity to unauthorised entities, the order continued. Why it matters: The fintech sector has been on the RBI’s radar consistently of late. The notification is another example of the RBI tightening its regulatory noose around fintechs as many of the companies which provide payment services are start-ups. They are likely to be most impacted by this notification. What are the provisions in the notification: The RBI directed non-bank PSOs to inform the central bank about the proposed acquisition or sale within 15 calendar days. It also added that the notification has come into effect. The RBI wrote that it will “endeavour” to respond within 45 calendar days after receiving the application. What will happen in case of a takeover/ acquisition: The RBI clarified that the approval will be needed regardless of whether there is a change in management. The non-bank PSO will have to submit an application to the Department of Payment and Settlement Systems (DPSS) along with the following documents— Information about the proposed directors, Details about the new shareholders, etc. What will happen in a sale/ transfer of payment activity to an unauthorised entity: The non-bank PSO will have to submit an application to the…
- Why did the Delhi High Court restrict use of Amitabh Bachchan’s image and voice? November 25, 2022
- Why did an Indian exchange, CoinDCX, publish its Proof of Reserves days after releasing its R2L ratio? November 25, 2022
- DPDP Bill, 2022 Has Received Good Response From Stakeholders: MeitY’s Ashwini Vaishnaw November 25, 2022
- Twitter Blocks Tweet of CJ Werleman’s YouTube Show Discussing Police Violence Against Indian Muslims November 25, 2022
- Unique Identification Authority of India (UIDAI) says verify Aadhaar as ID proof using QR November 25, 2022
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
The Structure and Style of a Dogma Community: Conspiracy theories and organized Twitter engagement on Sushant Singh Rajput
Studying the 'community' supporting the late Sushant Singh Rajput (SSR) shows how Twitter was gamed through organized engagement
Do we have an enabling system for the National Data Governance Framework Policy (NDGFP) aiming to create a repository of non-personal data?
A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'
India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...
Why ‘group privacy’ should be recognised, and how ‘non-personal’ data becomes a regulatory blindspot
There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...