meta_id 3242795

On June 15, 2026, the Reserve Bank of India (RBI) issued Master Directions on Authorisation to operate a Payment System under the Payment and Settlement Systems Act, 2007 (PSS Act). The directions consolidate and repeal five previous circulars and guidelines issued between 2015 and 2023, establishing a comprehensive framework for entities seeking to operate payment systems in India. The directions establish eligibility criteria requiring applicants to meet minimum capital requirements in accordance with system-specific guidelines, maintain prescribed net-worth levels, and satisfy the RBI's "fit and proper" criteria. Applicants must demonstrate sound credentials, integrity, and financial soundness, with directors and promoters subject to disqualification rules including convictions for moral turpitude, economic offences, insolvency, or restraining orders from regulatory authorities. Entities must submit applications through the RBI's portal along with statutory auditor certificates evidencing net-worth compliance. The framework introduces restrictions on investments from Financial Action Task Force (FATF) non-compliant jurisdictions. New investors from such jurisdictions cannot acquire more than 20 percent voting power in payment system operators, though existing investors may continue or increase investments to support business continuity. The directions provide perpetual validity for certificates of authorisation to new entities and existing operators meeting compliance conditions, with one-year renewals for non-compliant operators. A one-year cooling period applies to entities whose authorisation is revoked, not renewed, or voluntarily surrendered, preventing reapplication during this period. The directions establish procedures for voluntary surrender of authorisation, requiring entities to extinguish liabilities to customers, merchants, and agents through escrow accounts and public notice processes. Authorisation remains available on an on-tap basis to eligible entities. These directions come into effect immediately upon publication on the RBI website and apply to all entities seeking or holding payment system authorisation under the PSS Act.