News · BFSI
The Reserve Bank of India has approved Kokan Mercantile Co-operative Bank Ltd. for direct participation in Centralised Payment Systems, enabling it to offer RTGS and NEFT services to customers once IT readiness is established.
✦ AI SUMMARY 30-second read
- RBI has granted Kokan Mercantile Co-operative Bank direct access to India's Centralised Payment Systems covering RTGS and NEFT.
- The bank has been allotted the unique primary number KMCB0000001 as part of the approval.
- Live services will follow after documentation, IT infrastructure development and upgradation are completed.
Why it matters: Direct payment system membership lets a co-operative bank serve customers faster and independently, without routing transactions through a sponsor bank.
This summary was generated by AI. Editors may review and update it.
The Reserve Bank of India has approved Kokan Mercantile Co-operative Bank Ltd. for direct participation in India's Centralised Payment Systems, clearing the path for the bank to offer Real Time Gross Settlement and National Electronic Funds Transfer services directly to its account holders.
As part of the approval, the bank has been assigned the unique primary number KMCB0000001, marking a formal recognition of its entry into the country's core payments infrastructure.
The bank's management acknowledged the collective contribution of its Chairman, Board of Directors, Managing Director, Deputy General Managers, Assistant General Managers and all staff, describing the approval as the result of sustained teamwork and dedication.
What was announced
RBI's approval grants Kokan Mercantile Co-operative Bank the right to participate directly in the Centralised Payment Systems that underpin RTGS and NEFT transactions across India.
RTGS handles high-value, time-critical fund transfers on a real-time basis, while NEFT processes transactions in batches throughout the day. Direct membership removes the need for the bank to route such payments through another institution.
What happens next
Customers will not have immediate access to the new services. The bank has indicated that a waiting period of a few months is expected before direct RTGS and NEFT operations commence.
During this period, the bank will complete required documentation and work on the development and upgradation of its IT infrastructure to meet the operational standards necessary for live participation in the payment systems.
The bank also extended congratulations to its Board members, employees and stakeholders on the milestone.
