What changed
RBI inserted paragraph 4.10.1 into its September 21, 2011 circular, granting automatic membership to decentralised payment systems for entities already direct participants in RTGS, NEFT, or NECS. This replaces the earlier separate admission process for each clearing house.
What it means for you
Banks that are already in centralised systems no longer need to apply individually for each decentralised clearing house. This reduces paperwork and speeds up access to CTS, ECS, and similar systems. It also ensures consistency across all clearing houses for eligible banks.
What you must do
- Verify your bank's participation status in RTGS, NEFT, or NECS using RBI's updated online lists.
- Update internal records to reflect automatic eligibility for decentralised payment systems across all clearing houses.
- Inform your operations and compliance teams about the immediate effect of this circular.
- Monitor RBI's website for any future updates to participant lists.
Who it affects
Scheduled commercial banks, Regional Rural Banks, Multi-state co-operative banks, Banks participating in NEFT and RTGS
Which banks are eligible for automatic membership?
Scheduled commercial banks, Regional Rural Banks, and multi-state co-operative banks that are already direct participants in RTGS, NEFT, or NECS.
What decentralised payment systems are covered?
All decentralised payment systems including MICR, non-MICR, CTS centres, ECS, and RECS across all clearing houses.
When does this change take effect?
The amendment came into force with immediate effect from March 15, 2012.