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‘On tap’ authorisation of payment systems

RBI has issued guidelines on ‘on tap’ authorisation of payment systems on 15th October 2019. The aim is to encourage innovation and competition.

Accordingly, it has been decided to offer on-tap authorisation for the following entities:

  1. Bharat Bill Payment Operating Unit (BBPOU).
  2. Trade Receivables Discounting System (TReDS).
  3. White Label ATMs (WLAs).


on-tap Authorisation of Payment Systems – Authorisation Criteria for non-bank PSOs

Sr No. Payment System Eligibility Criteria*
Financials Specific to the PS Common to all
1. BBPOUs Rs.100 cr Net worth (to be maintained at all times) Applicant must have domain experience in the field of bill collection for a minimum period of one year. • Company registered under the Companies Act, 2013.

• Entities with Foreign Direct Investment (FDI) / Foreign Portfolio Investment (FPI) / Foreign Institutional Investment (FII) shall meet the capital requirements as applicable under the extant Consolidated FDI policy guidelines.

• The Memorandum of Association (MOA) must cover the specific activity.

• Fit and Proper criteria will be assessed by RBI1.

• The overall financial strength of the promoters / entity; sound technological basis to support its operations; management; governance etc. shall be other important criteria.

2. TReDS • Minimum paid up equity capital – Rs. 25 cr

• Non-promoters, to have shareholding up to 10 per cent of equity capital

3. WLA Operators (WLAOs) Rs.100 cr Net worth (to be maintained at all times) • ATMs to be deployed in the following ratio:

1:2:3 for Metro & Urban : Semi-Urban : Rural Regions.

• Among the various regions, the ratio will be in favour of rural regions. If a WLAO deploys adequate ATMs in a rural region, it need not deploy ATMs in metro, urban or semi-urban regions to meet the ratio requirements. If a WLAO deploys ATMs in a semi-urban region, it shall deploy adequate ATMs in a rural region as per the ratio and may not deploy any ATM in a metro or urban regions.



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