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The Payment and Settlement Systems Act, 2007

Central

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.

Act number
51 of 2007
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
20 Dec 2007

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

42 sections

  1. Section 1Short title, extent and commencement.
  2. Section 2Definitions.
  3. Section 3Designated authority.
  4. Section 4Payment system not to operate without authorisation.
  5. Section 5Application for authorisation.
  6. Section 6Inquiry by the Reserve Bank.
  7. Section 7Issue or refusal of authorisation.
  8. Section 8Revocation of authorisation.
  9. Section 9Appeal to the Central Government.
  10. Section 10Power to determine standards.
  11. Section 10ABank, etc., not to impose charge for using electronic modes of payment.
  12. Section 11Notice of change in the payment system.
  13. Section 12Power to call for returns, documents or other information.
  14. Section 13Access to information.
  15. Section 14Power to enter and inspect.
  16. Section 15Information, etc., to be confidential.
  17. Section 16Power to carry out audit and inspection.
  18. Section 17Power to issue directions.
  19. Section 18Power of Reserve Bank to give directions generally.
  20. Section 19Directions of Reserve Bank to be complied with.
  21. Section 20System provider to act in accordance with the Act, regulations, etc.
  22. Section 21Duties of a system provider.
  23. Section 22Duty to keep documents in the payment system confidential.
  24. Section 23Settlement and netting.
  25. Section 23AProtection of funds collected from customers.
  26. Section 24Settlement of disputes.
  27. Section 25Dishonour of electronic funds transfer for insufficiency, etc., of funds in the account.
  28. Section 26Penalties.
  29. Section 27Offences by companies.
  30. Section 28Cognizance of offences.
  31. Section 29Application of fine.
  32. Section 30Power to exempt.
  33. Section 31Power to compound offences.
  34. Section 32Act to have overriding effect.
  35. Section 33Mode of recovery of penalty.
  36. Section 34Act not to apply to stock exchanges or clearing corporations of stock exchanges.
  37. Section 34AAct to apply to designated trade repository and issuer.
  38. Section 34BPowers of Reserve Bank not to apply to International Financial Services Centre
  39. Section 35Certain persons deemed to be public servants.
  40. Section 36Protection of action taken in good faith.
  41. Section 37Power to remove difficulties.
  42. Section 38Power of Reserve Bank to make regulations.