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Background
Overview
This Act forms the legal backbone for India's entire digital payment ecosystem, including UPI and RuPay. Understanding its provisions and the RBI's powers under it is crucial for comprehending financial sector regulation, digital economy governance, and the legal framework for financial stability.
The Payment and Settlement Systems Act, 2007, is a parliamentary act that provides for the regulation and supervision of payment systems in India. It designates the Reserve Bank of India (RBI) as the authority for regulating and overseeing all payment and settlement systems in the country, aiming to ensure their safe, secure, and efficient functioning.