The Reserve Bank of India (RBI) has decided to allow on-tap authorisation for three retail payments systems — BBPOU, TReDS, and WLAO. According to the RBI, the move is aimed at diversification of risk and encourages innovation and competition.
In January, the Reserve Bank issued a policy paper on new retail payments systems, which called for liberal entry points for new entrants in the segment. According to the paper, there are eight operators in the field of BBPOU, three in TReDS, and eight non-banks as WLAO.
“Today non-banks are the backbone for creation of a strong payments ecosystem, with more than 50 per cent of the payment flows driving through the payments networks and services provided. I hope to see more private players entering the fray,” said Dewang Neralla, chief executive officer, Atom Technologies.