What changed
RBI clarified that RRBs have two options for NEFT membership: direct membership if they meet the centralized payment system access criteria from the September 21, 2011 circular, or continued participation through a sponsor bank as per the November 23, 2009 circular. This resolves ambiguity on whether RRBs must follow the new access criteria exclusively.
What it means for you
Banks and RRBs gain clarity on NEFT membership pathways, reducing confusion and enabling RRBs to choose based on their capabilities. Direct membership may enhance operational efficiency for larger RRBs, while sponsor bank arrangements remain viable for smaller ones, ensuring continued access to NEFT without disruption.
What you must do
- Review your RRB's financial, technical, and operational resources to decide on direct NEFT membership or sponsor bank route.
- If opting for direct membership, ensure compliance with the access criteria in circular DPSS.CO.OD. 494 / 04.04.009 / 2011-12 dated September 21, 2011.
- If continuing via sponsor bank, confirm the arrangement aligns with the November 23, 2009 circular guidelines.
- Acknowledge receipt of this circular to RBI as instructed.
Who it affects
All Scheduled Commercial Banks, Regional Rural Banks (RRBs), Sponsor banks of RRBs
Can an RRB choose both direct membership and sponsor bank participation simultaneously?
No, the circular states RRBs may join NEFT in any one of the two ways as preferred, not both.
What happens if an RRB does not meet the access criteria for direct membership?
Such RRBs can continue to participate through their sponsor bank as per the earlier November 23, 2009 circular.