RBI to Introduce Licensing Framework for Point-of-Sale Players
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The Reserve Bank of India (RBI) is set to roll out a comprehensive licensing framework for point-of-sale (POS) operators, a move that is poised to impact major players in the industry. Let's delve into the details: Background The rapid growth of third-party operators in the offline payments sector has underscored the need for regulatory measures. While banks and non-banking financial companies (NBFCs) currently engaged in the POS business won't be affected, third-party operators will need to obtain licenses to continue their operations¹. Key Points 1. Objective: The primary objective of this licensing framework is to ensure operational harmony and level the playing field between online and offline payment operators. 2. Major Players: The development will significantly impact major players in the POS space, including well-known names such as Pine Labs, MSwipe, Paytm, and BharatPe. 3. Operational Balance: By introducing licensing norms, the RBI aims to create a balanced environme