An Insight to RBI PSS Compliance Regulations
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With people's growing preference for cashless transactions, worries about consumer data security and the responsibilities of service providers responsible for facilitating such transactions have grown significantly.
The Reserve Bank of India has established a framework for payment system providers, keeping in mind the interests of ordinary people and the risks they may face while using virtual transaction methods. It is known as RBI PSS compliance.This ensures that customers can rely on proper and risk-free transaction methods.
What is This 'Compliance' All About?
Under the Payment Settlement Act 2007, the Reserve Bank of India is in charge of overseeing India's banking payment and settlement system. As a result, any company setting up and operating a payment system in India receives a certificate of permission from the RBI. To keep its authorization, a payment company must follow RBI PSS compliance guidelines to ensure that the technology used to run the payment system is safe, secure, and efficient, and that it follows the permitted process flow. Security and controls, hardware, operating systems, applications, access controls, and disaster recovery are all evaluated as part of an RBI PSS audit.
Any deviation from the RBI's rules, as well as violations of its regulations, are criminal offences. If the system provider violates the RBI PSS compliance rules and regulations, fails to follow the orders and directions, or is determined to be in violation of the terms and conditions under which the authorisation was issued, RBI may revoke the authorization.
Compliance With the RBI: Key Requirements:
All payment systems that are authorised under the Payment and Settlement Systems Act of 2007 must have their systems audited on a regular basis.
Every system provider must run the payment system in RBI PSS compliance Act's provisions as well as the rules and regulations that govern payment system operation.
To its existing or potential system participants, the system providers must communicate the terms and conditions, including the costs and restrictions of liability.
Electronic Clearing Service Credit, Electronic Clearing Service Debit, Electronic Funds Transfer, Regional Electronic Clearing Service, Real Time Gross Settlement System, Pre-paid Payments System, and Mobile Banking System are the systems covered by this method.