RU PAY to be Internatioanalised

Expanding the scope of resolving the issue of non-performing assets (NPA) to other regulated entities, extending the time for Urban Cooperative Banks (UCB) to achieve the target for priority sector lending, internationalisation of Rupay cards are some of the major decisions of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC).

Announcing the decisions of the MPC, RBI Governor Shaktikanta Das said the Rupay debit and credit cards are gaining increased acceptance abroad.

He said the banks are now permitted to issue Rupay prepaid forex cards for Indians travelling abroad.

Das said the Rupay prepaid forex cards will expand the payment options for Indians going abroad.

The RBI Governor also said Rupay cards will also be enabled for issuance in foreign jurisdictions.

Das said the resolution of NPAs through compromise under the Prudential Framework and technical write-offs of loans will be extended to all regulated entities and not just for banks and few non-banking finance companies (NBFC).

"It is proposed to issue comprehensive guidelines on compromise settlements and technical write-offs which will now be applicable to all regulated entities, including co-operative banks. Further, it is also proposed to rationalise the extant prudential norms on restructuring of borrower accounts affected by natural calamities," Das said.

As regards the priority sector lending targets for UCBs Das said, "While a number of UCBs have met the required milestones as of March 2023, a need has arisen to ease the implementation challenges faced by other UCBs. It has, therefore, been decided to extend the timelines for achieving the targets by two more years up to March 2026."

The UCBs which have met the targets as on March 31, 2023 shall be suitably incentivised, Das said.

The MPC also decided to expand the scope and reach of e-Rupi vouchersby (i) permitting non-bank prepaid payment instruments (PPI) issuers to issue e-RUPI vouchers; (ii) enabling issuance of e-RUPI vouchers on behalf of individuals; and (iii) simplifying the process of issuance, redemption and others.

Streamlining the Bharat Bill Payment System (BBPS) Processes and Membership Criteria and Rationalisation of Licensing Framework for Authorised Persons (APs) under Foreign Exchange Management Act (FEMA), 1999 were the other decisions taken by the MPC at their three day meeting held at JuneA6-8, 2023.