Regulatory Architecture
RBI, NPCI, and the PSS Act 2007
UPI operates under the overarching regulatory framework of the Payment and Settlement Systems Act, 2007, with the RBI as the statutory regulator and NPCI — a not-for-profit umbrella organisation set up by RBI and the Indian Banks' Association — as the retail payments system operator that actually runs UPI, RuPay, IMPS, and other rails.
- PSS Act, 2007: gives RBI powers to authorise, regulate, and oversee all payment systems in India (Section 4 requires RBI authorisation to operate a payment system).
- NPCI: incorporated in 2008 under Section 25 of the Companies Act, 1956 (now Section 8, Companies Act 2013) as a not-for-profit entity; UPI was launched by NPCI in 2016.
- MDR-setting for UPI operates through a consultative process involving NPCI, the Payments Council of India (industry body), banks, and the government, given the zero/near-zero MDR mandate is set through statute rather than market pricing alone.
● Tracked since August 16, 2026 · last seen September 15, 2026 · updates as the daily brief publishes
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