Section 12 of The Payment and Settlement Systems Act, 2007
The Reserve Bank may call for from any system provider such returns or documents as it may require or other information in regard to the operation of his payment system at such intervals, in such form and in such manner, as the Reserve Bank may require from time to time or as may be prescribed and such order shall be complied with.
Summary
- The Reserve Bank has the power to ask a payment system operator for specific reports or papers.
- They can also ask for any other information about how the payment system is being run.
- The Reserve Bank decides how often these reports must be sent, such as weekly or monthly.
- The Reserve Bank also sets the specific format and the way the information must be delivered.
- Any person or company running a payment system must follow these orders.
Practical examples
FAQ
1. Who has the authority to ask for these documents?
The Reserve Bank of India is the only authority that can call for these records under this law.
2. What kind of information can they ask for?
They can ask for formal reports (called returns), physical or digital documents, or any general information about how the payment system is operating.
3. Does a system provider have a choice in whether to provide the info?
No, the law states that such orders shall be complied with, meaning it is a mandatory requirement.
4. Can the Reserve Bank change the format of the reports?
Yes, they have the power to specify the form and the manner in which the information is provided.
Test yourself
Q1.Under Section 12 of The Payment and Settlement Systems Act, 2007, who is legally allowed to call for returns or documents from a system provider?
Q2.According to Section 12 of The Payment and Settlement Systems Act, 2007, what is a system provider required to do when the Reserve Bank asks for information?
Q3.Under Section 12 of The Payment and Settlement Systems Act, 2007, the Reserve Bank can specify which of the following regarding the requested information?
Q4.If the Reserve Bank needs to know about the daily operations of a specific payment system under Section 12 of The Payment and Settlement Systems Act, 2007, what can they request?