SectionsParticulars
1Preamble
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 ...
Chapter IPreliminary
1Short title, extent and commencement
Chapter I: Preliminary 1.     This Act may be called the Payment and Settlement Systems Act, 2007. 2.     It extends to the whole of India. 3.     It sha...
2Definitions
2. Definitions.- 1.     In this Act, unless the context otherwise requires,- a.     "bank" means,-                       i.        a bank included in the...
Chapter IIDesignated Authority and Its Committee
3Designated authority and its Committee
Chapter II: Designated Authority and Its Committee 1.     The Reserve Bank shall be the designated authority for the regulation and supervision of payment s...
Chapter IIIAuthorisation of Payment Systems
4Payment system not to operate without authorisation
Chapter III: Authorisation of Payment Systems1.     No person, other than the Reserve Bank, shall commence or operate a payment system except under and in a...
5Application for authorisation
1.     Any person desirous of commencing or carrying on a payment system may apply to the Reserve Bank for an authorisation under this Act. 2.     An appli...
6Inquiry by the Reserve Bank
After the receipt of an application under section 5, and before an authorisation is issued under this Act, the Reserve Bank may make such inquiries as it may...
7Issue or refusal of authorisation
7. Issue or refusal of authorisation. – 1.     The Reserve Bank may, if satisfied, after any inquiry under section 6 or otherwise, that the application is c...
8Revocation of authorisation
8. Revocation of authorisation. – 1.     If a system provider,-               i.        contravenes any provisions of this Act, or              ii.      ...
9Appeal to the Central Government
1.     Any applicant for an authorisation whose application for the operation of the payment system is refused under sub-section (3) of section 7 or a system...
Chapter IVRegulation and Supervision by the Reserve Bank
10Power to determine standards
Chapter IV: Regulation and Supervision by the Reserve Bank10. Power to determine standards. – 1.     The Reserve Bank may, from time to time, prescribe- a. ...
11Notice of change in the payment system
1.     No system provider shall cause any change in the system which would affect the structure or the operation of the payment system without- (a) the prior...
12Power to call for returns, documents or other information
12. Power to call for returns, documents or other information –The Reserve Bank may call for from any system provider such returns or documents as it may requ...
13Short title
The Reserve Bank shall have right to access any information relating to the operation of any payment system and system provider and all the system participan...
14Power to enter and inspect
Any officer of the Reserve Bank duly authorized by it in writing in this behalf, may for ensuing compliance with the provisions of this Act or any regulations...
15Information, etc., to be confidential
1.     Subject to the provisions of sub-section (2), any document or information obtained by the Reserve Bank under sections 12 to 14 (both inclusive) shall...
16Power to carry out audit and inspection
The Reserve Bank may, for the purpose of carrying out its functions under this Act, conduct or get conducted audits and inspections of a payment system or par...
17Power to issue directions
Where the Reserve Bank is of the opinion that,- a.     a payment system or a system participant is engaging in, or is about to engage in, any act, omission...
18Power of Reserve Bank to give directions generally
18. Power of Reserve Bank to give directions generally. – Without prejudice to the provisions of the foregoing, the Reserve Bank may, if it is satisfied that ...
19Directions of Reserve Bank to be complied with
19. Directions of Reserve Bank to be complied with. – Every person to whom a direction has been issued by the Reserve Bank under this Act shall comply with s...
Chapter VRights and Duties of a System Provider
20System provider to act in accordance with the Act, regulations, etc.
Chapter V: Rights and Duties of a System Provider Every system provider shall operate the payment system in accordance with the provisions of this Act, the r...
21Duties of a system provider
1.     Every system provider shall disclose to the existing or potential system participants, the terms and conditions including the charges and the limita...
22Duty to keep documents in the payment system confidential
1.     A system provider shall not disclose to any other person the existence or contents of any document or part thereof or other information given to him ...
23Settlement and netting
1.     The payment obligations and settlement instructions among the system participants shall be determined in accordance with the gross or netting procedu...
Chapter VISettlement of Disputes
24Settlement of disputes
Chapter VI: Settlement of Disputes 1.     The system provider shall make provision in its rules or regulations for creation of panel consisting of not less ...
25Dishonour of electronic funds transfer for insufficiency, etc., of funds in the account
1.     Where an electronic funds transfer initiated by a person from an account maintained by him cannot be executed on the ground that the amount of money s...
Chapter VIIOffences and Penalties
26Penalties
Chapter VII: Offences and Penalties26. Penalties. – 1.     Where a person contravenes the provisions of section 4 or fails to comply with the terms and cond...
27Offences by companies
1.     Where a person committing a contravention of any of the provisions of this Act or any regulation, direction or order made thereunder is a company, ev...
28Cognizance of offences
1.     No court shall take cognizance of an offence punishable under this Act except upon a complaint in writing made by an officer of the Reserve Bank gener...
29Application of fine
A court imposing any fine under this Act may direct that the whole or any part thereof shall be applied in, or towards payment of, the costs of the proceeding...
30Power of Reserve Bank to impose fines
30. Power of Reserve Bank to impose fines. – 1.     Notwithstanding anything contained in section 26, if a contravention or default of the nature referred t...
31Power to compound offences
1.     Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any offence punishable under this Act for any contravention, not being an ...
Chapter VIIIMiscellaneous
32Act to have overriding effect
Chapter VIII: Miscellaneous32. Act to have overriding effect. – The provisions of this Act shall have effect notwithstanding anything inconsistent therewith ...
33Mode of recovery of penalty
1.     The penalty imposed on the defaulter by the Reserve Bank under section 30 may be recovered by issuing a notice to any person from whom any amount is d...
34Act not to apply to stock ex-changes or clearing corporations of stock ex-changes
34. Act not to apply to stock ex-changes or clearing corporations of stock ex-changes. – Nothing contained in this Act shall apply to stock exchanges or the c...
35Certain persons deemed to be public servants
Every officer of the Reserve Bank who has been entrusted with any power under this Act, shall be deemed to be a public servant within the meaning of section 2...
36Protection of action taken in good faith
No suit or other legal proceedings shall lie against the Central Government, the Reserve Bank, or any officer thereof for any damage caused or likely to be ca...
37Power to remove difficulties
37. Power to remove difficulties. – 1.     If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order pub...
38Power of Reserve Bank to make regulations
38. Power of Reserve Bank to make regulations. – 1.     The Reserve Bank may, by notification, make regulations consistent with this Act to carry out the pr...
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