The Payment and Settlement Systems (PSS) Act 2007 which came into force with effect from 12 August 2008, gives guidelines for regulation and supervision of payment systems in India. It gives regulatory power to the RBI for facilitation of payment system in the country. Developments in the payment space including launch of prepaid payment instruments (PPIs) have been administered by the PSS Act.
Under the Act the RBI issues Certificates of Authorisation for the setting of payment facilities by operators. The Act also empowers the Bank to regulate and supervise the payment and settlement systems in the country.
