Master Directions on Authorisation to operate a Payment System
UR
- Applies toAll regulated entities
- StatusIn force
- IssuedJun 15, 2026
- Amendmentsnone tracked
- Length33 points in 3 sections · 3 min read
The four dates on this rule
- PublishedJun 15, 2026The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyJun 15, 2026The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
Kept in your browser only. Your desk
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Can be read two ways
A point marked this way sits on an RBI paragraph that can honestly be read two ways. Our own sentence takes one of the two. BankPulse does not choose for you: read RBI’s own paragraph, at the number printed on the point, before you act on it.
Two ways — both, or either one. RBI’s paragraph joins two things in the and-or form. One reading: Both of them apply, together. The other: Either one of them, on its own, is enough.
Must know
1. Starts when RBI posts it
These rules start the day RBI puts them on its own website.
2. Needs RBI's yes first
No one may run a payment system without RBI's own authorisation.
3. Apply any time, no window
A company can apply for authorisation at any time, not only in a window.
4. Auditor certifies its net worth
Its auditor certifies that it meets RBI's net-worth rule, with the application.
5. Fit and proper test
The company, its promoters and their group must pass RBI's fit-and-proper test.
6. RBI's word is final
RBI alone decides who is fit and proper, and that word is final.
7. Incomplete bids sent back
An application missing the capital rule or the right form is returned.
8. Risky-country money treated differently
Money from an FATF non-compliant country is not treated like other money.
9. No quiet takeover allowed
A new investor from such a country cannot quietly take control of the company.
10. Kept under one-fifth of votes
New investment from such a country stays under 20 per cent of the vote.
11. New firm, no-expiry licence
A brand-new company gets an authorisation that never expires.
12. Renewal keeps no expiry too
An existing operator can get the same no-expiry authorisation when its old one is due.
13. Licence can be withdrawn
If it does not fix things in time, RBI can withdraw its authorisation.
14. Rule breaks invite action
Breaking any condition can bring RBI action, including limits on its business or losing its licence.
15. Can hand back its licence
A company that wants to stop can ask RBI to give up its licence.
16. Board resolution needed first
Its own board first passes a resolution to give up the licence, and says why.
17. Auditor lists what it owes
Its auditor lists every escrow amount and every amount still owed to customers and partners.
18. No dues, auditor confirms
Once every amount owed is paid, its auditor confirms nothing is left owing.
19. Unpaid dues held three years
Money still owed is not booked as profit, and is kept aside for three years.
20. Claim window is three years
A customer can still claim unpaid money for three years after the licence is cancelled.
21. One-year freeze can apply
RBI can impose a one-year freeze in several situations, including a cancelled or refused licence.
22. No new bid during freeze
During that freeze, it cannot apply to run any payment system at all.
23. RBI's reading wins any doubt
If there is any doubt, RBI's own reading of these Directions is final.
Do it
1. Apply through RBI's own portal
A company applies for authorisation on RBI's own portal.
Background
1. Covers new applicants too
It applies to a company that is applying to run one.
2. Covers running operators too
It also applies to a company already authorised to run one.
3. Capital rule sits elsewhere
How much capital it needs is fixed by that payment system's own rule.
4. New firm, provisional accounts
A brand-new company with no audited accounts gives a provisional balance sheet instead.
5. RBI can shorten the freeze
RBI can shorten or waive that freeze in an unusual case, on request.
6. Six old rules replaced
This replaces six older RBI circulars, listed in the direction's own table.
7. Old approvals still count
Anything approved under the old rules is treated as approved under this one.
8. Past penalties still stick
A penalty already earned under the old rules is not wiped out by this change.
9. Other laws still apply
These Directions add to other laws and rules, they do not replace them.