What changed
The Reserve Bank of India has issued new master directions for authorisation to operate a payment system, which includes definitions, eligibility criteria, and requirements for payment system operators. The directions also cover investment in entities from non-compliant jurisdictions and the validity period of the certificate of authorisation. The rules aim to regulate and supervise payment systems in India, ensuring their safety and efficiency.
What it means for you
The new directions will impact payment system operators, including banks, non-bank operators, and fintech companies, as they will need to comply with the eligibility criteria and requirements outlined in the regulations. This may involve changes to their business models, governance structures, and risk management practices. The rules will also affect the overall payment landscape in India, promoting a more secure and efficient payment ecosystem.
What you must do
- Review the master directions and understand the eligibility criteria and requirements
- Assess your organisation's compliance with the new regulations
- Make necessary changes to your business model, governance structure, and risk management practices
- Ensure investment in entities from non-compliant jurisdictions is compliant with the regulations
Who it affects
Payment system operators, Banks, Non-bank operators, Fintech companies
What is the purpose of the master directions?
The purpose is to regulate and supervise payment systems in India, ensuring their safety and efficiency.
Who is affected by the new directions?
Payment system operators, including banks, non-bank operators, and fintech companies, are affected by the new regulations.
What are the key requirements for payment system operators?
The key requirements include eligibility criteria, investment in entities from non-compliant jurisdictions, and the validity period of the certificate of authorisation.