RRBs to get NEFT membership if they meet financial, technical criteria: RBI

MUMBAI: The Reserve Bank today said regional rural banks (RRBs) which meet the criteria of having minimum financial and technical resources, including capital adequacy ratio of 9 per cent and net worth of at least Rs 25 crore, are eligible for membership of the NEFT system.

"Those RRBs which meet the access criteria requirements for centralised payment systems ... and have the necessary financial, technical and operational resources to obtain and maintain direct National Electronic Fund Transfer membership may, if they so choose, become direct member of NEFT," the Reserve Bank said in a notification.

The apex bank had in September revised the access criteria for payments systems, including centralised payment systems like NEFT, Real Time Gross Settlement (RTGS) System and National Electronic Clearing Service (NECS).

Under this, membership to the centralised payment systems will be open to all licensed banks provided they fulfill certain conditions, including capital adequacy ration of 9 per cent, non-performing assets below 5 per cent, minimum networth of Rs 25 crore and recommendation of the regulatory department concerned.