RBI Relaxation Compliance Norms with Various Payment System Requirements

System Requirements

Keeping in view the resurgence of the COVID-19 pandemic and the representations received from various bank and non-bank entities, it has been decided to extend the timeline of certain compliance Norms with respect to the Various Payment System Requirements.

The Reserve Bank of India (RBI) vide circular No. RBI/2021-22/41  -- CO.DPSS.POLC.No.S-106/02-14-003/2021-2022 dated 22.05.2021, in exercise of its power under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), has issued circular w.r.t. Relaxation in timeline for compliance with various payment system requirements to provide relief to taxpayers in view of the severe pandemic and spike in Covid-19 cases:

Annexure (Relaxations)

to RBI Circular CO.DPSS.POLC.No.S-106/02-14-003/2021-2022 dated May 21, 2021

Extension provided vide circular CO.DPSS.POLC.No.S33/02-14-008/2020-2021 (click here) dated March 31, 2021 to enable payment system providers and participants to put in place workable solutions to comply with the provisions of Paragraphs 7.4 and 10.4 of the circular dated March 17, 2020 (Click Here) will not be impacted.

This Circular issued to the followings

• The Chairman / Managing Director / Chief Executive Officer
• All Scheduled Commercial Banks, including Regional Rural Banks /
• Urban Co-operative Banks / State Co-operative Banks /
• District Central Co-operative Banks / Payments Banks / Small Finance Banks /
• Local Area Banks / Non-Bank PPI Issuers /
• Authorized Payment System Operators / Participants

The RBI noted that the relaxations are being introduced in view of the present situation in the country. The nationwide lockdown in the wake of COVID-19 abruptly disrupted business operations across sectors. RBI's decision to extend these timelines is a welcome step as it would afford some breathing space to payment system operators / participants to meet the various compliance requirements. 

Source: Click Here

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