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The Payment and Settlement Systems Act

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.
2007
List of Chapters & Sections

  1. PRELIMINARY

  2. 1
     Short title, extent and commencement
  3. 2
     Definitions

  • DESIGNATED AUTHORITY

  • 3
     Designated authority

  • 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

  • REGULATION AND SUPERVISION BY THE RESERVE BANK

  • 10
     Power to determine standards
  • 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

  • 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

  • SETTLEMENT OF DISPUTES

  • 24
     Settlement of disputes
  • 25
     Dishonour of electronic funds transfer for insufficiency, etc., of funds in the account

  • OFFENCES AND PENALTIES

  • 26
     Penalties
  • 27
     Offences by companies
  • 28
     Cognizance of offences
  • 29
     Application of fine
  • 30
     Power of Reserve Bank to impose fines
  • 31
     Power to compound offences

  • 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
  • 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