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RBI Extends Payment System Compliance Deadlines Amid COVID-19

Current · Source: Reserve Bank of India · RBI/2021-22/41 · issued 21 May 2021 · ~2 min read
Quick answerRBI has extended deadlines for payment system compliance due to COVID-19 resurgence. Key changes: non-bank PPI issuers now have until Sept 30, 2021 to meet net-worth requirements; TAT compensation rules use 'working days' until same date; system audit reports and PA authorization deadlines also pushed to Sept 30, 2021.
The rule, in the simplest words
How it plays out — a real example

A branch operations officer in Indore, Priya, processes a customer's failed UPI transaction. She checks the new rule: she must use 'working days' (not counting Sundays or holidays) to calculate the turnaround time and compensation until September 30, 2021. This gives her bank extra time to fix the issue without rushing during the COVID-19 surge.

What changed

RBI extended timelines for four payment system requirements: non-bank PPI issuers must meet the Rs 15 crore net-worth condition based on financial position as of September 30, 2021 instead of March 31, 2021; the harmonisation of TAT and customer compensation for failed transactions will continue to use 'working days' until September 30, 2021 instead of switching to 'calendar days'; authorised Payment System Operators now have until September 30, 2021 to submit their annual System Audit Report instead of May 31, 2021; existing non-bank payment aggregators have until September 30, 2021 to apply for authorisation instead of June 30, 2021.

What it means for you

Banks and payment entities get breathing room to comply with critical payment system rules during the pandemic surge. The extension reduces immediate compliance pressure, especially for non-bank PPI issuers needing to shore up net worth and for PAs finalising authorisation applications. However, the deadlines are now fixed at September 30, 2021, so entities must use this window to complete all requirements without further delay.

What you must do

Who it affects

All Scheduled Commercial Banks, 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, Authorised Payment System Operators, Payment Aggregators and Payment Gateways

❓ Common questions

What is the new deadline for non-bank PPI issuers to meet the Rs 15 crore net-worth requirement?

The deadline is now based on the financial position as of September 30, 2021, instead of March 31, 2021. This means the audited balance sheet for the period ending September 30, 2021 must show at least Rs 15 crore net worth.

Does the extension affect the requirement for payment aggregators to put in place workable solutions for paragraphs 7.4 and 10.4 of the March 17, 2020 circular?

No, the extension specifically states that the timeline for putting in place workable solutions for those paragraphs is not impacted. Only the authorisation application deadline for existing non-bank PAs has been extended to September 30, 2021.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 889 kb ) Relaxation in timeline for compliance with various payment system requirements RBI/2021-22/41 CO.DPSS.POLC.No.S-106/02-14-003/2021-2022 May 21, 2021 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 / Authorised Payment System Operators / Participants Madam / Dear Sir, Relaxation in timeline for compliance with various payment system requirements A reference is invited to Reserve Bank of India instructions – (a) DPSS.CO.PD.No.1164/02.14.006/2017-18 dated October 11, 2017 (as updated from time to time) on Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPI-MD); (b) DPSS.CO.PD.No.629/02.01.014/2019-20 dated September 20, 2019 on Harmonisation of Turn Around Time (TAT) and Customer Compensation for Failed Transactions using Authorised Payment Systems; (c) DPSS.CO.OD.No.1325/06.11.001/2019-20 dated January 10, 2020 on Scope and Coverage of System Audit of Payment Systems; (d) DPSS.CO.PD.No.1810/02.14.008/2019-20 dated March 17, 2020 on Guidelines on Regulation of Payment Aggregators (PAs) and Payment Gateways (PGs); and (e) DPSS.CO.PD.No.1897/02.14.003/2019-20 dated June 4, 2020 on Extension of Timeline for Compliance with Various Payment System Requirements. 2. 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 prescribed for compliance in respect of a few areas detailed in the Annexure . 3. This directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). Yours faithfully (P Vasudevan) Chief General Manager Annexure to RBI Circular CO.DPSS.POLC.No.S-106/02-14-003/2021-2022 dated May 21, 2021 SN Instruction / Circular Present Timeline Revised Timeline 1. All existing non-bank PPI issuers (at the time of issuance of PPI-MD) to comply with the minimum positive net-worth requirement of Rs.15 crore for the financial position as on March 31, 2020 (audited balance sheet). Financial position as on March 31, 2021 Financial position as on September 30, 2021 2. Harmonisation of TAT and customer compensation for failed transactions using authorised Payment Systems – “Calendar days” to be read as “Working days”. Working days until December 31, 2020 (Calendar days from January 1, 2021) Working days – Prospective – Until September 30, 2021 3. Authorised Payment System Operators (PSOs) are required to furnish System Audit Report conducted by CERT-IN empanelled auditors or a Certified Information Systems Auditor registered with Information Systems Audit and Control Association or by a holder of a Diploma in Information System Audit qualification of the Institute of Chartered Accountants of India, on an annual basis within two months of close of their respective financial year. By May 31, 2021 By September 30, 2021 4. Existing non-bank entities offering PA services shall apply for authorisation on or before June 30, 2021. By June 30, 2021 By September 30, 2021* * Extension provided vide circular CO.DPSS.POLC.No.S33/02-14-008/2020-2021 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 will not be impacted. 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/41 · issued 21 May 2021. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Authorised PSOs: Schedule system audit by CERT-IN empanelled auditors or equivalent and submit report by September 30, 2021.
  • Existing non-bank PAs: Complete authorisation application to RBI by September 30, 2021.
📜 Compliance
  • Non-bank PPI issuers: Ensure audited financials as of September 30, 2021 show minimum net worth of Rs 15 crore.
  • Review TAT and customer compensation processes: Continue using 'working days' for failed transactions until September 30, 2021.
  • Monitor RBI circulars for any further updates on these timelines.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All Scheduled Commercial Banks, 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, Authorised Payment System Operators, Payment Aggregators and Payment Gateways), your first concrete step on “RBI Extends Payment System Compliance Deadlines Amid COVID-19” is: “Non-bank PPI issuers: Ensure audited financials as of September 30, 2021 show minimum net worth of Rs 15 crore.” (RBI issued this 21 May 2021).

  1. Circular: RBI/2021-22/41 -- RBI Extends Payment System Compliance Deadlines Amid COVID-19
  2. Issued: 21 May 2021
  3. Action required: Non-bank PPI issuers: Ensure audited financials as of September 30, 2021 show minimum net worth of Rs 15 crore.
  4. Action required: Review TAT and customer compensation processes: Continue using 'working days' for failed transactions until September 30, 2021.
  5. Action required: Authorised PSOs: Schedule system audit by CERT-IN empanelled auditors or equivalent and submit report by September 30, 2021.
  6. Action required: Existing non-bank PAs: Complete authorisation application to RBI by September 30, 2021.
  7. Action required: Monitor RBI circulars for any further updates on these timelines.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12095&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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