Section 34A of The Payment and Settlement Systems Act, 2007
1[34A. Act to apply to designated trade repository and issuer.--(1) The provisions of this Act shall apply to, or in relation to, a designated trade repository or issuer, as they apply to, or in relation to, payment systems to the extent applicable, subject to the modification that, throughout this Act, unless the context otherwise requires,--
- (a)references to a "payment system" or "system provider" shall be construed as references to a "designated trade repository" or "issuer", as the case may be;
- (b)references to "commencement of this Act" shall be construed with reference to--
- (i)a designated trade repository, as references to the date on which a trade repository is specified by the Reserve Bank as a designated trade repository; and
- (ii)an issuer, as references to commencement of the Payment and Settlement Systems (Amendment) Act, 2015 (18 of 2015).
- (2)The Reserve Bank may, on an application by a designated trade repository or otherwise, permit or direct the designated trade repository to provide such other services as are deemed necessary from time to time. Explanation.--For the purposes of this section, the expression "designated trade repository" shall mean a trade repository or a class of trade repositories, as may be specified by the Reserve Bank from time to time.]
Summary
- The rules of the Act apply to designated trade repositories (entities that store records of financial trades) and issuers.
- For these groups, any mention of a payment system or system provider in the law is treated as a reference to them.
- For issuers, these rules officially started on June 1, 2015.
- For trade repositories, the rules start from the date the Reserve Bank officially names them as designated.
- The Reserve Bank has the power to allow or direct a trade repository to provide extra services as needed.
Practical examples
FAQ
1. Who is considered an issuer under this section?
An issuer is a person who gives out legal entity identifiers or other unique identification codes specified by the Reserve Bank.
2. What is a designated trade repository?
It is a person or group engaged in the business of collecting and storing electronic records for financial transactions that the Reserve Bank specifies.
3. Can the Reserve Bank force a trade repository to do things not listed in the Act?
Yes, the Reserve Bank can direct a designated trade repository to provide other services it deems necessary over time.
Test yourself
Q1.Under Section 34A of The Payment and Settlement Systems Act, 2007, when does the Act begin to apply to a specific trade repository?
Q2.According to Section 34A of The Payment and Settlement Systems Act, 2007, how should the term "system provider" be read when applying the law to an issuer?
Q3.Under Section 34A of The Payment and Settlement Systems Act, 2007, what is the fixed commencement date for issuers?
Q4.Under Section 34A of The Payment and Settlement Systems Act, 2007, what additional authority does the Reserve Bank have over designated trade repositories?