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

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.

Question:

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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