In exercise of the powers conferred by sub-section (1) read with clauses (b) to (f) of subsection (2) of Section 38 of the Payment and Settlement Systems Act, 2007 (51 of 2007), the Reserve Bank of India (RBI) updated the Payment and Settlement Systems Regulations, 2008.
- These allow companies to run payment businesses to seek licenses from the regulator.
This Regulation specifies the following:
i.Authorisation of Payment Systems
- Submission of application for authorisation for commencing or carrying on a payment system
- Grant of authorisation certificate
ii.Payment Instructions and Determination of Standards
iii.Furnishing of Returns, Documents and Other Information
- Submission of returns, documents etc
- Furnishing of accounts and balance sheets
Key Points:
i.Every person desirous of commencing or carrying on a payment system will submit an application under sub-section (1) of Section 5 of the Act to the Bank for grant of authorisation under sub-section (1) of section 7 of the Act.
ii.The licensing application should include process flow of the operator, technology platform to be used, security features and inter-operability with other payment system operators.
iii.The operators are required to furnish all information and documents desired from the RBI from time to time.
- They also have to submit its annual accounts to the regulator three months after account closing along with a copy of its audited balance sheet.
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RBI cautions against car pooling app sRide
RBI cautioned public against car pooling app sRide, which is operating a semi-closed pre-paid instrument without authorization from the central bank under the provisions of the Payment and Settlement Systems Act, 2007.
- The app is operated by sRide Tech Private Limited which has its registered office at Gurugram, Haryana.
- RBI stated that Persons dealing with sRide Tech are at their own risk.
About sRide:
sRide is a carpooling mobile application to connect people within the community to share rides. This will help users share the cost of travel, reduce travel time, increase mobility and build communities.
Recent Related News:
On December 23, 2021, RBI extended the card-on-file (CoF) tokenisation deadline by 6 months i.e. to June 30, 2022. Earlier the deadline was fixed till December 31, 2021.
About Reserve Bank of India (RBI):
Establishment– April 1, 1935
Headquarters– Mumbai, Maharashtra
Governor– Shaktikanta Das
Deputy Governors– Mahesh Kumar Jain, Michael Debabrata Patra, M. Rajeshwar Rao, T. Rabi Sankar
