RBI issues fresh directions on electronic transactions via intermediaries

The Reserve Bank of India (RBI) has issued fresh directions for opening and operation of accounts and settlement of payments for electronic payment transactions involving intermediaries.

This has been done with a view to safeguard the interests of the customers and to ensure that the payments made by them are duly accounted for by the intermediaries receiving such payments and remitted to the accounts of the merchants who have supplied the goods and services without undue delay, RBI said in a release.

All banks, payment system providers and system operators should effect payments to merchants, which do not involve transfer of funds to nodal banks, within a maximum of T+2 settlement cycle (where T is defined as the day of intimation regarding the completion of transaction), RBI said.

All payments to merchants involving nodal banks should be effected within a maximum of T+3 settlement cycle.

As the funds held in the accounts would be in the nature of outside liability of the bank, the balances in these accounts should be reckoned as such for the purpose of computation of net demand and time liabilities of the bank, RBI said.

Banks should subject these accounts to concurrent audit and a certificate to the effect that these accounts are operated in accordance with these directions should be submitted to the department of payment and settlement system, Reserve Bank of India, on a quarterly basis.