Oversight Framework for Financial Market Infrastructures and Retail Payment Systems released on Saturday, the RBI said: “With a view to safeguard the interests of the customers and users and to ensure that the payments made by the intermediaries using electronic or digital or online payment modes were duly accounted for by the intermediaries receiving such payments and transmitted to the accounts of the merchants or to similar other entities, certain guidelines were issued to banks and payment system operators for addressing a few aspects of the functioning of intermediaries.”
As such, RBI said that these entities were not subjected to direct regulations for outsourcing arrangements were made applicable to them.
“Based on the feedback received on discussion paper and taking into a ccount the important functions of the intermediaries in the online payments s pace as also keeping in view their role vis-a-vis handling funds, it was decided to (a) regulate in entirety the activities of PAs, and (b) provide baseline technology-related recommendations to PGs.
“Accordingly, the RBI shall regulate and supervise non-bank PAs and t he existing non-bank PAs are also required to submit application seeking for authorisation on or before June 30, 2021. On the other hand, the PGs shall be considered as technology providers or outsourcing partners of banks or non-banks, as the case may be and have been prescribed to put in place certain baseline technology related cyber security controls,” the RBI said.
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