RBI's Regulatory Framework for Digital Payments
The Reserve Bank of India is the regulator and supervisor of the payment and settlement systems in India under the Payment and Settlement Systems (PSS) Act, 2007. Section 10 of the PSS Act empowers the RBI to issue directions to system providers. The RBI also operates under the RBI Act, 1934 for monetary functions and the Banking Regulation Act, 1949 for bank supervision.
- PSS Act, 2007: Primary legislation for payment system regulation; establishes the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) within RBI
- NPCI (National Payments Corporation of India): Operates UPI, IMPS, NACH, RuPay — not directly regulated by PSS Act as an operator but as a subsidiary mechanism under RBI oversight; established under Section 25 of the Companies Act
- UPI: Unified Payments Interface launched in 2016 by NPCI; grew to over 10,637 crore transactions in H1 2025 (52x growth since 2019); now constitutes 99.8% of payment transactions by volume
- RBI's Master Direction on Digital Payment Security Controls (2021) mandated multi-factor authentication and risk-based transaction monitoring for banks and payment aggregators
- Ombudsman Scheme for Digital Transactions (OSDT): Grievance redressal mechanism for digital payment complaints; merged into the Integrated Ombudsman Scheme in 2021
● Tracked since April 10, 2026 · last seen June 25, 2026 · updates as the daily brief publishes
See it in today’s brief.
Daily current affairs with every static concept explained in place.
Read the daily brief