The Reserve Bank of India (RBI) has issued Master Directions on Authorisation to Operate a Payment System, bringing together various regulatory instructions issued over the years under the provisions of the Payment and Settlement Systems (PSS) Act, 2007. The new directions come into effect immediately.

The Master Directions consolidate key guidelines and circulars related to payment system authorisation, including provisions on net-worth computation, voluntary surrender of authorisation certificates, on-tap licensing of payment systems, cooling-off periods for authorisation applicants, perpetual validity of Certificates of Authorisation (CoA), investment restrictions involving FATF non-compliant jurisdictions, and the framework for voluntary surrender of authorisation.

The consolidated framework incorporates instructions issued between January 2015 and May 2023, replacing the need for stakeholders to refer to multiple circulars and guidelines.

According to the RBI, the move is part of its broader initiative to streamline regulatory frameworks across departments by consolidating existing instructions into comprehensive master directions. The exercise aims to improve regulatory clarity, enhance ease of access to instructions, and reduce compliance burdens for regulated entities operating in the payments ecosystem.

The new framework is expected to benefit payment system operators and applicants by providing a single reference point for authorisation-related requirements and regulatory expectations.