The committee on payment systems has recommended that the Reserve Bank of India (RBI), as a regulator and service provider of payment and settlement systems, should be empowered to regulate/supervise payment systems/services of entities which are not banks and financial institutions and such other entities which are not under its direct regulatory/ supervisory purview.
In effect, this means that the central bank is set to become the regulator for the entire payment system in the country including money orders and stock exchange payments.
The committee, which has decided to prepare a model or illustrative draft for the proposed statute for the regulation of payment and settlement systems in the country, has concluded that the proposed legislation needs to primarily provide a legal basis for the funds settlement arising out of the systematically important payment systems, including the settlement of securities.
