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…
- ONDC September Round-Up: AI, grievance redressal, financial services, Google, exports, and more September 30, 2023
- ‘The Liver Doctor’ X account suspended following defamation case by Himalaya Wellness Corporation September 29, 2023
- Bombay HC to Pronounce Judgment on Fact Check Amendment on December 1st, Stay on Notification to Continue Until Then September 29, 2023
- Here’s how web publishers can opt out of Google crawlers scraping website data to train AI models September 29, 2023
- Parliament Standing Committee Calls For A Monitoring Group To Check Technological Readiness For Digital Education Projects September 29, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...
Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...
RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.
Straw man fallacy: IT Ministers’ defence of government exemptions in data protection law misses the point
Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...
The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...
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...