RBI's Regulatory Authority over Payment Systems
The Reserve Bank of India is India's central bank and the primary regulator of the banking system, exercising authority under the Reserve Bank of India Act, 1934 and the Payment and Settlement Systems Act, 2007 (PSS Act). The PSS Act empowers RBI to regulate and supervise all payment systems in India, including digital payment platforms. RBI issues directions, circulars, and master directions to banks and payment service providers.
- The 2017 RBI circular on customer liability first introduced the concept of zero liability and limited liability for unauthorised transactions — this 2026 draft revises and expands that framework.
- RBI's Payment Vision documents (2019-21, 2021-25) have guided India's digital payment ecosystem expansion.
- The Banking Regulation Act, 1949 gives RBI supervisory authority over commercial banks, including directing them on customer service standards.
- The draft comes amid rapid growth: India processed over 100 billion UPI transactions in FY 2024-25.
● Tracked since March 06, 2026 · last seen September 16, 2026 · updates as the daily brief publishes
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