Authorisation of entities for operating a Payment System under the Payment and Settlement Systems Act, 2007 (PSS Act) – Introduction of Cooling Period

Last updated: 05 December 2020

Save Share

Quick Summary

The Reserve Bank of India (RBI) has introduced a one-year 'cooling period' for entities involved in operating payment systems. This applies to authorised operators whose authorisation is revoked or not renewed, those who voluntarily surrender their authorisation, or applicants whose authorisation has been rejected. New entities formed by promoters involved in these situations will also be subject to this period. During this time, these entities are prohibited from applying to operate any payment system under the Payment and Settlement Systems Act, 2007.

Reserve Bank of India RBI/2020-21/73 DPSS.CO.OD.No.753/06.08.005/2020-21 December 4, 2020 The Chairman / Managing Director / Chief Executive Officer Non-bank Payment System Operators Madam / Dear Sir Authorisation of entities for operating a Payment System under the Payment andSettlement Systems Act, 2007 (PSS Act) Introduction of Cooling Period Please refer to provisions contained in Section 4 of PSS Act and Oversight Framework for Financial Market Infrastructures and Retai

Daily Limit Reached

You have reached your daily limit of 2 Free Notice & Circular

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Notice & Circular Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience.

FAQ :

The cooling period is introduced to encourage discipline, ensure applications are submitted by serious players, and for the effective utilisation of regulatory resources.

The cooling period applies to authorised Payment System Operators (PSOs) whose authorisation is revoked or not renewed, those who voluntarily surrender their authorisation, and applicants whose authorisation has been rejected by the RBI. It also applies to new entities set up by promoters involved in these categories.

The cooling period is for one year, starting from the date of revocation, non-renewal, acceptance of voluntary surrender, or rejection of the application.

If an application for authorisation is returned for any reason, the cooling period will be invoked after the entity is given an additional opportunity to resubmit the application.

No, during the cooling period, entities are prohibited from submitting applications for operating any payment system under the Payment and Settlement Systems Act, 2007.

Guest

Notification No : RBI/2020-21/73 DPSS.CO.OD.No.753/06.08.005/2020-21
Published in Community & General
Source : https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=12001&Mode=0

Share Report Abuse

Comments