The Payment and Settlement Systems Act, 2007
(Act No. 51 of 2007) — [20th December, 2007]
An Act to provide for the regulation and supervision of payment systems in India and to designate the Reserve Bank of India as the authority for that purpose and for matters connected therewith or incidental thereto.
Chapter I — Preliminary
Chapter II — Designated Authority
Chapter III — Authorisation of Payment Systems
- 4. Payment system not to operate without authorisation
- 5. Application for authorisation
- 6. Inquiry by the Reserve Bank
- 7. Issue or refusal of authorisation
- 8. Revocation of authorisation
- 9. Appeal to the Central Government
Chapter IV — Regulation and Supervision by the Reserve Bank
- 10. Power to determine standards
- 10A. Bank, etc., not to impose charge for using electronic modes of payment
- 11. Notice of change in the payment system
- 12. Power to call for returns, documents or other information
- 13. Access to information
- 14. Power to enter and inspect
- 15. Information, etc., to be confidential
- 16. Power to carry out audit and inspection
- 17. Power to issue directions
- 18. Power of Reserve Bank to give directions generally
- 19. Directions of Reserve Bank to be complied with
Chapter V — Rights and Duties of a System Provider
- 20. System provider to act in accordance with the Act, regulations, etc.
- 21. Duties of a system provider
- 22. Duty to keep documents in the payment system confidential
- 23. Settlement and netting
- 23A. Protection of funds collected from customers
Chapter VI — Settlement of Disputes
- 24. Settlement of disputes
- 25. Dishonour of electronic funds transfer for insufficiency, etc., of funds in the account
Chapter VII — Offences and Penalties
- 26. Penalties
- 27. Offences by companies
- 28. Cognizance of offences
- 29. Application of fine
- 30. Power of Reserve Bank to impose penalties
- 31. Power to compound offences
Chapter VIII — Miscellaneous
- 32. Act to have overriding effect
- 33. Mode of recovery of penalty
- 34. Act not to apply to stock exchanges or clearing corporations of stock exchanges
- 34A. Act to apply to designated trade repository and issuer
- 34B. Powers of Reserve Bank not to apply to International Financial Services Centre
- 35. Certain persons deemed to be public servants
- 36. Protection of action taken in good faith
- 37. Power to remove difficulties
- 38. Power of Reserve Bank to make regulations
Amending Acts incorporated: the Payment and Settlement Systems (Amendment) Act, 2015 (18 of 2015); the Finance Act 2017; the Finance (No. 2) Act, 2019 (23 of 2019); the International Financial Services Centres Authority (Repeal and Amendment) Act, 2019 (50 of 2019); and the Jan Vishwas (Amendment of Provisions) Act, 2023 (18 of 2023).
