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Act51
Enacted 2007

The Payment and Settlement Systems Act, 2007

In force 42 sections Finance

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 and for matters connected therewith or incidental thereto.

Act 51 of 2007 Enacted 20 Dec 2007 In force 12 Aug 2008 Department Department of Financial Services

Administered by. Ministry of Finance, Department of Financial Services · Other Acts of 2007

Preamble

THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007

ACT NO. 51 OF 2007

[20th December, 2007.] 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 and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:--

What this Act covers

Summary of the Payment and Settlement Systems Act, 2007

Key Provisions

1. Settlement Commission

• Empowers the Settlement Commission to send cases back to the Central Excise Officer if the applicant hasn’t cooperated, with the officer entitled to use all materials produced before the Commission.

• Orders of settlement are conclusive on stated matters.

• Sums due under settlement orders are recoverable as if due to the Central Government.

• Bars subsequent settlement applications under certain conditions (penalty for concealment, conviction for an offence, or case sent back).

2. Commissioner of Payments

Appointment & Powers: A Commissioner of Payments is appointed for disbursing amounts to a Company, with powers to manage a deposit account and prioritize claims.

• Payment Process: The Central Government pays the Commissioner, who manages claims with defined priorities.

• Claim Process: Claims against the Company must be made within a specified period, with the Commissioner examining and admitting/rejecting them based on priorities.

Sections

Type to filter. 42 sections.

  1. 1Short title, extent and commencement
  2. 2Definitions
  3. 3Designated authority
  4. 4Payment system not to operate without authorisation
  5. 5Application for authorisation
  6. 6Inquiry by the Reserve Bank
  7. 7Issue or refusal of authorisation
  8. 8Revocation of authorisation
  9. 9Appeal to the Central Government
  10. 10Power to determine standards
  11. 10ABank, etc., not to impose charge for using electronic modes of payment
  12. 11Notice of change in the payment system
  13. 12Power to call for returns, documents or other information
  14. 13Access to information
  15. 14Power to enter and inspect
  16. 15Information, etc., to be confidential
  17. 16Power to carry out audit and inspection
  18. 17Power to issue directions
  19. 18Power of Reserve Bank to give directions generally
  20. 19Directions of Reserve Bank to be complied with
  21. 20System provider to act in accordance with the Act, regulations, etc
  22. 21Duties of a system provider
  23. 22Duty to keep documents in the payment system confidential
  24. 23Settlement and netting
  25. 23AProtection of funds collected from customers
  26. 24Settlement of disputes
  27. 25Dishonour of electronic funds transfer for insufficiency, etc., of funds in the account
  28. 26Penalties
  29. 27Offences by companies
  30. 28Cognizance of offences
  31. 29Application of fine
  32. 30Power to exempt
  33. 31Power to compound offences
  34. 32Act to have overriding effect
  35. 33Mode of recovery of penalty
  36. 34Act not to apply to stock exchanges or clearing corporations of stock exchanges
  37. 34AAct to apply to designated trade repository and issuer
  38. 34BPowers of Reserve Bank not to apply to International Financial Services Centre
  39. 35Certain persons deemed to be public servants
  40. 36Protection of action taken in good faith
  41. 37Power to remove difficulties
  42. 38Power of Reserve Bank to make regulations

Rules made under this Act

1 set of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.

  • The Payment and Settlement Systems Regulations, 20082008

Related Acts

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 42 sections of this Act has its own page. This page is not a substitute for legal advice.