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Non-bank PSOs need approval for takeover or sale of business

Published on July 05, 2022
Current Context: Non-bank payment system operators will need RBI approval in case of a takeover that may or may not result in a change of management and sale or transfer of payment activity.
Non-bank PSOs need approval for takeover or sale of business
  • Non-bank PSOs have to submit an application to the Department of Payment and Settlement Systems (DPSS), Central Office (CO), and RBI, along with the required documents for any takeovers.
  • On other hand, the buyer will need to apply for authorization from the RBI.
  • But if the acquiring entity is a bank, it will have to apply to three departments i.e, DPSS, CO, and RBI for approval.
  • A time of 45 calendar days will be taken to respond after receipt of complete details from both entities.
  • Apart from that, non-bank PSOs would also need to inform the central bank of any change in management or directors within 15 days.


Q.1 As per the RBI circular, is the time given to Non-Bank PSO to inform RBI about a change of management?
a. 20 days
b. 15 days
c. 22 days
d. 45 days
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