Press Information Bureau

Government of India

Ministry of Finance

11-May-2012 17:43 IST

Connection of Banks with EPS

The Reserve Bank of India (RBI) has initiated action to expand the membership of Centralized Electronic Payment System (CEPS) making more banks eligible to connect to these systems. RBI issued instructions in September, 2011 by which the access criteria to Centralised Electronic Payment Systems has been rationalized by bringing down the net worth requirement to Rs. 25 crore from Rs.50 crore, thus making more banks eligible for membership of CEPS. Since April 2012, sub-membership route to Centralised EPS has also been opened to all licenced banks who were not participating in these systems on account of either not meeting the access criteria or because of cost considerations.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

* * *

DSM/SS/Hb

Access criteria for centralized electronic payment systems eased, enabling more licensed banks to connect through direct or sub membership. The Reserve Bank of India revised access to Centralized Electronic Payment Systems by rationalizing eligibility thresholds to expand direct membership for licensed banks and opened a sub membership route for banks previously excluded due to access criteria or cost considerations, enabling broader connectivity to centralized payments infrastructure.