RBI has relaxed timeline for compliance with various payment system requirements

The Reserve Bank of India through circular dated May 21, 2021 has issued relaxation in timeline for compliance with various payment system requirements. As per the revised timeline, the financial institutions shall:

1. All existing non-bank PPI issuers (at the time of issuance of PPI-MD) to comply with the minimum positive networth requirement of Rs.15 crore for the financial position as September 30, 2021.
2. Harmonization of TAT and customer compensation for failed transactions using authorized Payment Systems shall be complied by Working days – Prospective – Until September 30, 2021– “Calendar days” to be read as “Working days”.
3. Authorized Payment System Operators (PSOs) are required to furnish System Audit Report conducted by CERT-IN empaneled auditors or a Certified Information Systems Auditor registered with Information Systems Audit and Control Association or by a holder of a Diploma in Information System Audit qualification of the Institute of Chartered Accountants of India, on an annual basis within two months of close of their respective financial year By September 30, 2021
4. Existing non-bank entities offering PA services shall apply for authorization on or before June 30, 2021.
   By June 30, 2021 By September 30, 2021.