Reserve Bank of India - Payment & Settlement Systems (RBI PSS)

With the trend of increase in cashless transactions, fuelled by demonetization and then the on-going pandemic, there has been a significant concern over the security of customer’s data. To address this and specify the responsibilities of payment service providers, the Reserve Bank of India (RBI) has laid down a framework for the payment system providers to introduce and upgrade safe and efficient modes of payment.

Under Payment Settlement Act 2007, Reserve Bank of India is responsible for controlling the Banking Payment and Settlement System in the country and authorizes any company that wants to operate a payment system in India. Payment companies need to comply with the RBI requirements stipulated in time, to ensure that the technology deployed to operate the systems are safe and follow the approved process flow.

RBI PSS Audit evaluates security & controls, hardware, operating systems, applications, access controls, and disaster recovery, among other aspects. The security framework aims at safeguarding payment systems in a geographic area that has a vast network of banking systems that facilitate such transactions, to maintain safe and risk-free transaction methods.

The payment systems falling under this procedure are :

  • Electronic Clearing Service Credit

  • Electronic Clearing Service Debit

  • Electronic Funds Transfer

  • Regional Electronic Clearing Service

  • Real Time Gross Settlement System

  • Pre-paid Payments System

  • Mobile Banking System.

Any divergence from the rules and violation of regulations laid down by RBI are punishable offences leading to revocation of the authorization.

The Reserve Bank of India, Payment & Settlement Systems audit consists of evaluation of the following : 

  1. Structure of the hardware

  2. Critical Applications

  3. Operating Systems

  4. Implemented security measures and controls

  5. All access controls, such as, disaster recovery plans and key applications

  6. Training of applications and employees managing systems

  7. Documentation

Any payment service provider in India needs to strictly abide by the RBI PSS Act 2007 and the timely updates, and undergo a periodic auditing of their systems

QRC has a deep understanding of the RBI PSS Act requirements, making it your perfect compliance partner to achieve RBI PSS Compliance certification.

We keep the following aspects in mind while working with you on your compliance journey

  • The technical standards and the design of the proposed system by the organization

  • The term and conditions of the operations of the service providers and their own security procedures

  • The manner in which the transfer of funds may be effected within the payment system

  • The procedure for fabrication of payment instructions affecting the payment obligations under payment system

  • The financial status experience and the integrity of the managing services

  • The monetary and credit policies of the payment service providers

  • The interests of the consumers, including the terms and conditions governing their relationship with payment providers.

Adherence to the RBI PSS compliance will help you efficiently work in the nation’s payment ecosystem.

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