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October, 2023
Regulates all entities facilitating cross-border payment transactions for the import and export of goods and services and provides the categories of authorisations required along with the net worth requirements. Requires all non-banks providing PA-CB services to apply to the RBI for authorisation. These entities can process import or export transactions, the maximum value of which shall INR 25,00,000 per unit. The entities need to adhere to the guidelines on governance, merchant on-boarding, customer grievance redressal and dispute management framework, baseline technology recommendations, security, fraud prevention and risk management framework provided in Guidelines on Regulation of Payment Aggregators and Payment Gateways, 2020.
June, 2022
The Payments vision is designed to address the challenges of cost, speed, access, and transparency in cross-border payments, aligning with the G-20's focus on these areas. It highlights the significant growth in digital payments, and attributes this to the adoption of digital payment technologies like UPI, IMPS, and PPI. It also emphasizes the need for real-time reporting of payment frauds and the establishment of an integrated platform for stakeholders to share information and take corrective actions. This initiative aims to leverage data from the Central Payment Fraud Information Registry (CPFIR) to prevent frauds. The document also outlines plans to examine access to Urban Co-operative Banks and Regional Rural Banks and enhance the CPFIR by creating a negative database of fraudulent beneficiaries and analysing fraud trends. Recognizing the growing influence of BigTech and FinTech companies in the payments ecosystem, the document proposes the publication of a discussion paper on the need for proportionate regulation. This includes considerations for domestic incorporation, reporting, and data use to ensure a balanced regulatory environment. It also discusses India's increased involvement in global standard-setting bodies and the potential for interlinking fast payment systems with other jurisdictions which is expected to improve trade, commerce, and remittance processes, thereby reducing costs and enhancing efficiency.
January, 2022
December, 2021
August, 2021
PPIs are instruments of payment that facilitate goods and services, including the transfer of funds, financial services and remittances, against the value stored within or on the instrument. As per these directions, PPI issuers are to maintain a log of all the transactions for at least ten years and make data available for scrutiny to RBI, create a Vendor Risk Management framework whereby vendors adhere to relevant legal and regulatory requirements relating to the geographical location of infrastructure and movement of data out of borders, etc.
February, 2021
This master direction establishes a robust governance structure for digital payment security aimed at ensuring that Regulated Entities (REs) implement common minimum standards of security controls for digital payment products and services. These guidelines apply to Scheduled Commercial Banks (excluding Regional Rural Banks), Small Finance Banks, Payments Banks, and credit card issuing Non-Banking Financial Companies (NBFCs). They emphasize the need for REs to have trained resources with the necessary expertise to manage digital payment infrastructure and highlights the importance of oversight and controls when third-party service providers are involved, in line with RBI's outsourcing guidelines. The guidelines outline specific security measures for card payments, including the use of Hardware Security Modules (HSMs) for secure key management, PIN generation, and validation. It also mandates the implementation of security measures for ATMs, such as BIOS passwords, disabling USB ports, and applying the latest software patches. They also require REs to periodically review their IT and IT security architecture and conduct risk assessments to protect and secure payment data, and mandate that REs have systems and procedures in place to periodically test backed-up data and applications related to digital products to ensure recovery without loss of transactions or audit trails to be tested at least on a half-yearly basis.
March, 2020
Introduces licensing, governance, Know Your Customer (KYC) and onboarding, and the settlement and maintenance of escrow account(s) for payment aggregators. The guidelines also categorise intermediaries into payment aggregators (intermediaries that help merchants make electronic payments) and payment gateways (intermediaries that provide technology infrastructure to route and facilitate the processing of online payments). Payment aggregators and merchants are not allowed to store payment data, except limited data for transaction tracking.
January, 2018
The report highlights the Digital India Programme and emphasizes the importance of transitioning to a digital economy. It identifies financial inclusion as a major challenge and suggests that digital payments can lower service delivery costs, enhance scalability, and provide small and micro enterprises access to formal financial services, thereby fostering economic growth and financial inclusion. The report also identifies several challenges in the digitalization process, including the need for a binding mechanism to hold service providers accountable for failed and unauthorized transactions, and the necessity for a robust security framework to address cyber security breaches. It also highlights the need for a clear policy position from the government on digitalization and digital payments. The report also discusses infrastructure for Digital Payments and specifically mentions the establishment of a USSD-based mobile payment service platform by NPCI, which allows mobile banking customers to perform transactions without the need for a smartphone in multiple regional languages.
December, 2016
The report highlights the need for regulatory reforms and innovations to enhance digital payment adoption. Despite the robust growth in digital payments, India lags globally in terms of usage, primarily due to inefficiencies in the existing framework and the persistent preference for cash. The report also emphasizes the importance of a well-designed payment system that reduces settlement costs and uncertainties while ensuring safe and timely transactions. Potential market failures related to safety and resilience in the payment system are also examined, underscoring the need for robust regulatory frameworks. The report also outlines several recommendations aimed at reforming the payment systems in India to enhance efficiency, security, and inclusivity. These recommendations are categorized based on the nature of changes required for their implementation. Firstly, there are measures that necessitate changes in primary legislation which are crucial for addressing foundational issues within the payment systems framework and ensuring that the legal infrastructure supports payment innovations. Secondly, the report identifies measures that can be implemented through changes in regulations or executive decisions. These measures are further sub-classified based on the institution responsible for their implementation viz., the Government of India (GOI) or the Reserve Bank of India (RBI). These measures should not be considered in isolation but rather as part of a comprehensive strategy to improve the payment systems. The report also discusses the need to upgrade the Payment and Settlement Act of 2007 to incorporate key principles and to separate the regulation of payments from banking regulation. This is intended to foster a more focused and independent regulatory environment for payment systems.
February, 2016
August, 2008
December, 2007
