Notice of change in the payment system

Section 11 of the Payment and Settlement Systems Act, 2007 deals with notice of change in the payment system. 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 approval of the Reserve Bank; The Act came into force on 12 Aug 2008.

(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 approval of the Reserve Bank; and

(b) giving notice of not less than thirty days to the system participants after the approval of the Reserve Bank:

Provided that in the interest of monetary policy of the country or in public interest, the Reserve Bank may permit the system provider to make any changes in a payment system without giving notice to the system participants under clause (b) or requiring the system provider to give notice for a period longer than thirty days.

(2) Where the Reserve Bank has any objection, to the proposed change for any reason, it shall communicate such objection to the systems provider within two weeks of receipt of the intimation of the proposed changes from the system provider.

(3) The system provider shall, within a period of two weeks of the receipt of the objections from the Reserve Bank forward his comments to the Reserve Bank and the proposed changes may be effected only after the receipt of approval from the Reserve Bank.

Section 11, The Payment and Settlement Systems Act, 2007 (Act 51 of 2007).