RBI vide notification no. RBI/2019-20/156 dated February 06, 2020, Reserve Bank of India has been decided to allow RRBs to provide mobile banking services and to act as merchant acquiring banks using Aadhaar Pay – BHIM app and POS terminals.
In this connection, the guidelines are as under:
- The RRB should have permission for mobile banking from the Reserve Bank of India.
- The bank’s IT systems & CBS should have been subjected to an IS Audit not earlier than six months from the date of application to confirm that the system is adequately secure.
- The bank must ensure the necessary infrastructure for application development, safety, and security of the transactions and handling of customer grievances.
- A customer grievance redressal mechanism duly approved by the bank’s board should be in place;
- The bank should have a board-approved policy on merchant acquisition for card transactions;
- There should not be any restrictions imposed on the bank for accepting deposits/ withdrawals by the Reserve Bank of India.
- No penalty should have been imposed in the last two financial years.
Those RRBs which intend to act as merchant acquiring bank should have,
- The net worth of ₹100.00 crores or more as on March 31 of the preceding financial year.
- Minimum CRAR at 9%.
- Net NPA below 5%.