RBI | Payment and Settlement Systems Regulations, 2008

Payment and Settlement Systems Regulations, 2008
(As amended upto February 2022)

In exercise of the powers conferred by sub-section (1) read with clauses (b) to (f) of sub- section (2) of Section 38 of the Payment and Settlement Systems Act, 2007 (51 of 2007), the Reserve Bank of India hereby makes the following regulations, namely :-

Chapter I

Preliminary

1. Short title and commencement :-

(1) These Regulations may be called the Payment and Settlement Systems Regulations, 2008.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions :-

(1) In these regulations, unless, the context otherwise requires :-
(a) 'Act' means the Payment and Settlement Systems Act, 2007 (51 of 2007);
(b) 'Bank' means the Reserve Bank of India constituted by the Reserve Bank of India Act, 1934 (2 of 1934);
(c) 'Authorisation Certificate' means the certificate containing the authorisation issued by the Bank under sub-section (1) of Section 7 of the Act.
(2) All other words and expressions used herein and not defined, but defined in the Act or the Reserve Bank of India Act, 1934 (2 of 1934) shall have the meanings respectively assigned to them in those Acts.

Chapter II

Authorisation of Payment Systems

3. Submission of application for authorisation for commencing or carrying on a payment system :-

(1) Every person desirous of commencing or carrying on a payment system (hereinafter referred to as 'applicant') shall submit an application under sub-section (1) of Section 5 of the Act to the Bank for grant of authorisation under sub-section (1) of section 7 of the Act.

(2) The application under sub-regulation (1) shall be made in Form A addressed to the Chief General Manager of Department of Payment and Settlement Systems at Central Office of the Bank at Mumbai, or to such other office or officer of the Bank as may be specified by it in this behalf.

(3) The application under sub-regulation (1) shall be accompanied by a non-refundable fee of Rs.10,000/- in the form of cash or electronic funds transfer or cheque or payment order or demand draft drawn in favour of the Bank.

4. Grant of authorisation certificate :-

(1) On consideration of the particulars furnished by the applicant, if the Bank is satisfied that the requirements under sub-section (1) of Section 7 of the Act are fulfilled, it may issue an authorisation certificate in Form 'B' to the applicant to commence or carry on a payment system and specify the date on which the authorisation shall take effect.

(2) The Bank, while granting authorisation, may impose such conditions as it may deem fit, and the authorisation so granted shall be in force subject to satisfaction of such conditions.

(3) The Bank may levy such amount as may be specified by it in the authorisation certificate, towards fees for authorisation to be in force under clause (c) of sub-section (2) of Section 7 of the Act.

(4) Where the Bank considers it necessary for the proper conduct of the payment system, it may require the applicant to furnish a security deposit under clause (d) of sub-section (2) of Section 7 of the Act, of such amount as may be specified by the Bank from time to time.

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