Amendments to India's Payment and Settlement Systems Regulations Explained

Introduction

On February 10, 2022, the Reserve Bank of India released a notification announcing amendments to the Payment and Settlement Systems Regulations, 2008, as outlined in the Payment and Settlement Systems Act, 2007. These amendments aim to clarify terminology and streamline certain regulatory requirements, thereby enhancing the operations of the payment system.

Payment and Settlement Systems (Amendment) Regulations, 2022

2. Amendments to Existing Regulations

The following changes are introduced in the Payment and Settlement Systems Regulations, 2008:

i. Regulation Updates

• The term "system provider" has been replaced with "system participant".

ii. Specific Provisions

• Sub-regulation (1): This provision has been omitted.
• Sub-regulation (2): Now renumbered as sub-regulation (1) and amended to state:
  • "The returns and documents required by the Bank under sub-regulation (1) must be submitted by the system participant in the format specified by the Bank periodically."
• Sub-regulation (3): Renumbered as sub-regulation (2) and now reads:
  • "The returns and documents specified in sub-regulation (1) shall be delivered by the system participant from its registered office to the Bank's office (Department of Payment and Settlement Systems, Central Office) in Mumbai."

Conclusion

The amendments to the Payment and Settlement Systems Regulations are designed to enhance clarity and operational efficiency within the payments framework. It is vital for stakeholders to familiarize themselves with these changes to ensure compliance.