RBI clarification on Requirement for obtaining prior approval in case of takeover / acquisition of control of non-bank Payment System Operators (PSOs)

RBI vide circular dated July 04, 2022 has issued clarification on Requirement for obtaining prior approval in case of takeover / acquisition of control of non-bank Payment System Operators (PSOs) and sale / transfer of payment system activity of non-bank PSO. The operations of non-bank PSOs (authorised to operate any Payment System) have been reviewed and they shall require prior approval of RBI in the following cases –

1. Takeover / Acquisition of control, which may / may not result in change of management.
2. Sale / Transfer of payment activity to an entity not authorized for undertaking similar activity.

The non-bank PSOs shall inform RBI within 15 calendar days in the following cases –

1. Change in management / directors.
2. Sale / Transfer of payment activity to an entity authorized for undertaking similar activity.