REGULATION AND SUPERVISION BY THE RESERVE BANKCentral

Section 14 of The Payment and Settlement Systems Act, 2007

Any officer of the Reserve Bank duly authorised by it in writing in this behalf, may for ensuring compliance with the provisions of this Act or any regulations, enter any premises where a payment system is being operated and may inspect any equipment, including any computer system or other documents situated at such premises and call upon any employee of such system provider or participant thereof or any other person working in such premises to furnish such information or documents as may be required by such officer

Summary

An officer from the Reserve Bank can enter the location where a payment system is run.
This officer must have a written authorization from the Reserve Bank to do this.
The purpose of the visit must be to make sure the law and regulations are being followed.
The officer can inspect equipment, like computers, or look at documents found there.
Any employee at the location must give the officer the information or papers they ask for.

Practical examples

1On May 12, 2025, Officer Sharma arrives at "GlobalPay" with a signed letter of authority. He enters the server room to inspect the computer systems and asks the head engineer for a copy of the security protocols.

2An authorized inspector visits a bank branch that handles money transfers on October 3, 2026. He checks the physical ledger books stored in the vault and requires the clerk on duty to explain how certain transactions are recorded.

FAQ

1. Can any bank employee walk in and inspect?

No, it must be an officer of the Reserve Bank who has been authorized in writing.

2. Can they look at the computers?

Yes, the law specifically mentions they can inspect any equipment, including computer systems.

3. Can they talk to the staff?

Yes, they can call upon any employee or person working there to provide information or documents.

4. Is this allowed for any reason?

The visit must be for the purpose of ensuring compliance with the Act or the regulations.

Test yourself

Q1.Under Section 14 of The Payment and Settlement Systems Act, 2007, what must an officer have before they can enter and inspect a premises?

Q2.Which of the following can be inspected by an officer under Section 14 of The Payment and Settlement Systems Act, 2007?

Q3.According to Section 14 of The Payment and Settlement Systems Act, 2007, who can the officer ask for information during an inspection?

Q4.What is the main purpose of the power to enter and inspect under Section 14 of The Payment and Settlement Systems Act, 2007?

13PreviousSection 13 Access to information.15NextSection 15 Information, etc., to be confidential.

←Section 13 Section 15→