What changed
RBI formalized access criteria for national payment systems (RTGS and NEFT) based on a Working Group report and public feedback. The new norms prescribe minimum financial thresholds—net worth, CRAR, NPAs, CRR/SLR compliance, and profitability—for entry and continued membership. Existing membership regulations and guidelines will be revised to align with these criteria.
What it means for you
Banks must now meet explicit financial soundness standards to participate in RTGS and NEFT, raising the bar for smaller or weaker institutions. This reduces systemic risk by ensuring only stable entities access critical payment infrastructure. However, some entities like RRBs, State Co-operative Banks, and District Central Co-operative Banks are eligible with relaxed criteria (only net worth and no default). Non-scheduled cooperative banks and special institutions like POSB may still get access based on their sectoral role, but they too must satisfy the applicable financial criteria.
What you must do
- Review your bank's latest audited financials to ensure net worth ≥ Rs 50 crore, CRAR ≥ 9%, net NPAs < 10%, and profit in at least one of the last two years.
- Confirm no CRR or SLR default occurred in the past year; rectify any past defaults immediately.
- Prepare to comply with revised RTGS and NEFT membership regulations and business guidelines once issued by RBI.
- If your bank is a non-scheduled cooperative or special institution, assess eligibility under the new criteria and engage with RBI for continued access.
Who it affects
All scheduled commercial banks (excluding RRBs for full criteria), Regional Rural Banks (subject to net worth and no default only), Urban cooperative banks (scheduled/non-scheduled), State cooperative banks (scheduled/non-scheduled/licensed/unlicensed), District central cooperative banks (scheduled/non-scheduled/licensed/unlicensed), Non-scheduled urban and state cooperative banks (considered based on special position), Post Office Savings Bank (for NEFT only), Primary Dealers (for RTGS only), Clearing organizations (for RTGS only)
What is the minimum net worth required for RTGS/NEFT membership?
The minimum net worth is Rs 50 crore, as per the latest audited balance sheet.
Does the new criteria apply to existing members?
Yes, continuation of membership depends on meeting these financial criteria and complying with the revised membership regulations.
Are non-scheduled cooperative banks eligible?
Yes, they may be considered given their special sectoral position, but they must still satisfy the financial soundness norms.