The Reserve Bank of India (RBI) has issued Master Directions on Authorisation to operate a Payment System, effective immediately. These directions consolidate instructions from various circulars and guidelines issued under the Payment and Settlement Systems Act, 2007 (PSS Act).
The move aims to enhance clarity, simplify compliance, and ease access for regulated entities.
The consolidated directions include provisions on net-worth computation, voluntary surrender of authorisation certificates, on-tap authorisation, cooling periods for entities, perpetual validity of authorisation certificates, and investment restrictions related to FATF
non-compliant jurisdictions. This step is part of RBI's ongoing efforts to streamline regulatory frameworks across its departments. The Payment and Settlement Systems Act, 2007 empowers RBI to regulate payment systems in India.
By consolidating these guidelines, RBI seeks to reduce the compliance burden on payment system operators and ensure better accessibility to regulatory instructions.
The updated framework also addresses voluntary surrender processes for authorisation certificates, ensuring smoother exits for entities no longer wishing to operate payment systems.
Additionally, perpetual validity for authorisation certificates simplifies long-term operations for payment system operators.
NewsDarpan
Read the full story