**Summary:**
This circular, RBI/2015-2016/410 DPSS.CO.PD.No.2894/02.14.003/2015-2016, issued by the Reserve Bank of India (RBI) on May 26, 2016, addresses merchant acquisition for card transactions. It supersedes and builds upon the guidelines outlined in circular RBI/2011-12/194.DPSS.PD.CO No. 513/02.14.003/2011-2012 dated September 22, 2011, which focused on strengthening the payment infrastructure.
The key provision of this circular allows all Scheduled Commercial Banks (including RRBs), Urban Cooperative Banks, State Cooperative Banks, and District Central Cooperative Banks to establish their own Board-approved policies on merchant acquisition. This delegation aims to encourage the expansion of card acceptance infrastructure to a broader range of merchants across diverse geographical locations, leveraging the experience banks have gained in the merchant acquiring business. The directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and is effective from the date of issuance.
For further information, contact Nanda S. Dave, Chief General Manager, Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400001. Phone: 91-22-2264 4995; Fax: 91-22-22691557; email: cgmdpsscorbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, referred to here through its circular number.
Scheduled Commercial Banks: A category of banks regulated by the Reserve Bank of India.
Regional Rural Banks: Regional Rural Banks in India.
Urban Cooperative Banks: A type of cooperative bank in India.
State Cooperative Banks: A type of cooperative bank in India, operating at the state level.
District Central Cooperative Banks: A type of cooperative bank in India, operating at the district level.
Payment and Settlement Systems Act 2007: An Act of the Indian Parliament that provides for the regulation and supervision of payment systems in India.
Mumbai, Maharashtra: City in India where the Central Office of the Department of Payment and Settlement Systems is located.
RBI/2015-2016/410
DPSS.CO.PD.No./2894/02.14.003/2015-2016 May 26, 2016
The Chairman and Managing Director / Chief Executive Officers
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks
Madam / Sir,
Merchant Acquisition for Card transactions
Please refer to our circular RBI/2011-12/194.DPSS.PD.CO No 513/02.14.003/2011-
2012 dated September 22, 2011 wherein various measures were prescribed for
strengthening the payment infrastructure and future proofing the system. Para 4(a)
(2) of the circular required action to be taken by banks in respect of strengthening
the merchant sourcing and monitoring process.
2. In order to encourage banks to expand card acceptance infrastructure to a wider
segment of merchants across all geographical locations and considering the
experience gained by the banks in merchant acquiring business, banks are advised
that they may put in place their own Board approved policy on merchant acquisition.
The above instructions will come into effect from the date of issue of this circular.
3. This directive is issued under Section 10(2) read with Section 18 of Payment and
Settlement Systems Act 2007 (Act 51 of 2007).
Yours faithfully
(Nanda S. Dave)
Chief General Manager
भुगतान और िनपटान �णाली िवभाग, क��ीयकायार्लय, 14वीमंिजल, क��ीयकायार्लयभवन,शहीदभगत�सहमागर्, फोट,र् मुम्बई - 400001
फोनTel: (91-22) 2264 4995; फैक् सFax: (91-22) 22691557; ई-मेलe-mail : cgmdpssco@rbi.org.in
Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road,
Fort, Mumbai - 400001
�हदी आसान ह,ै इसका �योग बढ़ाइए