Read in this week's update, mandatory implementation of Core Financial Services Solution rolled out by RBI for NBFCs. RBI press release cautions on public prepaid payment instruments issued by unauthorized entities
Highlights of the Week:
Implementation of ‘Core Financial Services Solution’ by NBFCs
RBI cancels Certificate of Registration of M/s P C Financial Services Private Limited
RBI cautions the public against prepaid payment instruments issued by unauthorised entities
The Reserve Bank of India (RBI) has issued a press release cautioning public against Gurgaon based company, sRide Tech Private Limited that has been operating a semi-closed (non-closed) pre-paid instrument (wallet) through its car-pooling application ‘sRide’ without obtaining the required authorisation from RBI under the provisions of the Payment and Settlement Systems Act, 2007.[1]
RBI has notified non-banking financial companies (NBFCs) – Middle Layer and NBFCs - Upper Layer with 10 (ten) and more ‘Fixed point service delivery units’ shall be mandatorily required to implement ‘Core Financial Services Solution (CFSS)’.
Further, the timeframe for implementation shall be as follows:[2]
Category of NBFC | Timeframe for implementation |
NBFC – Middle and Upper Layers with 10 (ten) or more ‘Fixed point service delivery units’ | On or before September 30, 2025 However, NBFC- Upper Layer shall ensure that the CFSS is implemented at least in 70% of ‘Fixed point service delivery units’ on or before September 30, 2024. |
NBFC – Base Layer and NBFC – Middle and Upper Layers with fewer than 10 ‘Fixed point service delivery units’ | Not mandatory |
RBI has canceled the Certificate of Registration (CoR) issued to M/s P.C. Financial Services Private Limited (PCFS) due to the contravention of RBI directions on outsourcing and Know Your Customer norms. Henceforth, PCFS shall not transact the business of a non-banking financial institution.[3]
4. RBI extends directions to banks
RBI has extended the directions issued to:
Name of the Bank | Extension from | Extension Till |
Shri Anand Co-operative Bank Limited, Chinchwad, Pune, Maharashtra[4]
| May 24, 2022 | |
Garha Co-operative Bank Ltd., Guna[5]
| February 25, 2022 | May 24, 2022 |
Rupee Co-operative Bank Ltd., Pune, Maharashtra[6]
| March 01, 2022 | May 31, 2022 |
Maratha Sahakari Bank Limited, Mumbai, Maharashtra[7]
| March 01, 2022 | May 31, 2022 |
[1] Press Release: 2021-2022/1750, Reserve Bank of India, February 22, 2022
[2] RBI/2021-22/175DoS.CO.PPG.SEC/10/11.01.005/2021-22, Reserve Bank of India, February 23, 2022 [3] Press Release: 2021-2022/1762, Reserve Bank of India, February 24, 2022
[4] Press Release: 2021-2022/1758, Reserve Bank of India, February 23, 2022
[5] Press Release: 2021-2022/1765, Reserve Bank of India, February 24, 2022
[6] Press Release: 2021-2022/1778, Reserve Bank of India, February 28, 2022
[7] Press Release: 2021-2022/1781, Reserve Bank of India, February 28, 2022