Amendments to India's Payment and Settlement Systems Regulations Explained

Introduction

On February 10, 2022, the Reserve Bank of India issued a notification regarding amendments to the Payment and Settlement Systems Regulations, 2008, under the Payment and Settlement Systems Act, 2007. This amendment aims to clarify terminologies and streamline certain regulatory requirements to enhance payment system operations.

Payment and Settlement Systems (Amendment) Regulations, 2022

2. Amendments to Existing Regulations

The following amendments are made to the Payment and Settlement Systems Regulations, 2008:

i. Regulation a

• The term "system provider" is replaced with "system participant".

ii. Regulation b

• Sub-regulation (1): This provision is omitted.
• Sub-regulation (2): This will be renumbered as sub-regulation (2) and revised to read:
  • "The returns and documents required by the Bank under sub-regulation (1) shall be submitted by the system participant in the form specified by the Bank from time to time."
• Sub-regulation (3): Renumbered as sub-regulation (3) and amended to state:
  • "The returns and documents specified in sub-regulation (1) must be submitted by the system participant from its registered office to the Bank's office (Department of Payment and Settlement Systems, Central Office), located in Mumbai."

Note: The Bank reserves the right to direct that submissions under sub-regulation (1) be sent to any other designated office.

Conclusion

These amendments to the Payment and Settlement Systems Regulations aim to improve clarity and operational efficiency within the payment systems framework. Stakeholders are encouraged to familiarize themselves with these changes to ensure compliance.