How To File A Case Under The Payment and Settlement Systems Act
The Payment and Settlement Systems Act, 2007 is an Indian law that governs the regulation and oversight of payment systems in the country. Key features of the act include:
Regulatory Authority: The government designates the Reserve Bank of India (RBI) as the regulatory authority responsible for overseeing payment systems in India.
Authorization Requirement: The RBI holds the power to revoke such authorization if it deems it necessary for reasons related to national monetary policy or other concerns. Payment systems must obtain authorization to operate.
Right to Appeal: Entities whose applications for authorization are denied or those whose authorization is revoked have the right to appeal to the Central Government. You must file appeals within 30 days, and the Central Government must resolve them within three months.
Obligations of System Providers: System providers must submit their audited financial statements. You must publish these documents either in two leading newspapers or on the provider’s official website.
Scope of Application: The act covers a wide range of payment systems, including ATMs, credit card services, inter-bank transfers, the National Electronic Funds Transfer (NEFT) system, and the Real Time Gross Settlement (RTGS) system.
How To File A Case Under The Payment and Settlement Systems Act?
To apply for authorization under the Payment and Settlement Systems Act, 2007, follow these steps:
Complete Form A, as outlined in Regulation 3(2) of the Payment and Settlement Systems Regulations, 2008. Provide all necessary information about the applicant and the payment system you’re proposing.
Include documents like proof of incorporation, business plans, and financial details.
Pay a non-refundable fee of ₹10,000 to the Reserve Bank of India through cash, cheque, or electronic transfer.
Send the filled-out form and supporting documents to the Reserve Bank within six months for review.
What Are The Offences And Penalties Under The Payment And Settlement Systems Act?
Operating a payment system without authorization constitutes an offense.
Failing to follow the terms of authorization can lead to penalties.
Not submitting required statements, documents, or giving false information is an offense
Prohibited information disclosed will be punished under this Act.
Violating any part of the Act or failing to follow RBI directions constitutes an offense
The RBI can start criminal proceedings against offenders and impose fines for breaking the rules.
How Does The Reserve Bank Of India (RBI) Addresses complaints Under The Payment And Settlement Systems Act?
The Reserve Bank of India (RBI) addresses complaints under the Payment and Settlement Systems Act, 2007 (PSS Act) through a defined process:
A financial institution may fail to resolve a customer’s payment system complaint within 30 days. For this, the customer can escalate the issue to the Banking Ombudsman.
The RBI investigates these complaints, ensuring adherence to the PSS Act. It holds the authority to revoke authorizations in cases of non-compliance and can issue directives to payment system providers.
A party may be dissatisfied with a decision related to authorization refusal or revocation. For this, they can appeal to the Central Government within 30 days.
In conclusion, filing a case under the Payment and Settlement Systems Act is an important process for addressing disputes. This als ensures compliance within the payment system framework. By understanding the necessary steps such as gathering evidence,submitting a complaint to the appropriate authority, and following the prescribed procedures, individuals and businesses can effectively seek redress for issues related to payment systems.
