Introduction

RBI PSS Act, 2007 controls all the Banking Payment and Settlement Systems across India. PSS providers includes payment gateway vendors but not banks. As a result of this Act, providers must obtain RBI PSS Compliance certification. Specifically, the Act directs the providers to ensure one requirement. All customers performing online transactions must be able to quickly transfer money to any bank account using credit or debit card.

Reserve Bank of India (RBI) wanted this process to take place in a safe, secure and efficient manner. Hence, they mandated the PSS act 2007 to access and authorize the transactions of online payment in India.

Objectives

The objectives of The Payment and Settlement Systems Act, 2007 are:

1. To provide regulation and supervision of payment methods in India.
2. To designate RBI, the apex institution as authority for purposes related to payment systems in India.
3. To constitute such regularities by RBI to exercise its power and perform its functions.
4. To provide a legal basis for “netting” and “settlement finality”.