17 February 2021
1. What legislative and regulatory provisions govern the fintech space in your jurisdiction and who enforces these?
The laws that regulate the technology used by service providers to furnish financial services to users is coined/ referred to as fintech laws.
A. The following legislative provisions govern the fintech space in India:
a) Payment and Settlement Systems Act, 2007:
Payment and Settlement Systems Act, 2007 (“PSA Act”), came into force on December 20, 2007, to regulate and supervise payment systems in India.
Under the PSA Act, a payment system is defined to mean a system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement service or all of them, but does not include a stock exchange. It is typically a system enabling credit card operations, debit card operations, smart card operations, money transfer operations or similar operations. In order to commence or operate a payment system, a person/ an entity is required to obtain an authorisation from the Reserve Bank of India (“RBI”). RBI has the right to access information of a payment system and the power to enter and inspect any premises where a payment system is being operated.
For further information, please contact:
Anu Tiwari – Partner (Co-Head – Fintech)
anu.tiwari@cyrilshroff.com
