The Reserve Bank of India (RBI) has published detailed guidelines to strengthen India’s digital payments architecture and improve security, control and compliance among banks, gateways, wallets and other non-banking entities.
The rules now specify that a payment operator or a bank cannot delay settlements to nodal settlement accounts beyond 24 hours. These rules are directly applicable for scheduled commercial banks, small finance banks, payment banks and credit card-issuing NBFCs.
“The Direction provides necessary guideline to set up a robust governance structure and implement common minimum standards of security controls for digital payment products and services,” the central bank said in a circular.
It added, “The Board and Senior Management shall be responsible for implementation of this policy. The policy shall be reviewed periodically, at least on a yearly basis. REs may formulate this policy separately for its different digital products or include the same as part of their overall product policy.” Further, all regulated entities have been given six months to ensure compliance.