RBI Issues Master Directions on Authorisation to Operate a Payment System

June 18, 2026
Current Context: On 15 June 2026, RBI issued Master Directions on Authorisation to Operate a Payment System under the PSS Act, 2007 (Sec. 10(2) & 18), effective immediately.
RBI Issues Master Directions on Authorisation to Operate a Payment System
  • They consolidate fragmented circulars (2015–2021) into a single framework for PSO authorisation.
  • Purpose: Streamline authorisation, strengthen governance, ensure financial soundness, and promote ease of doing business in India’s payments ecosystem (UPI, cards, wallets, PPIs).
  • On‑Tap Authorisation: Applications anytime via PRAVAAH portal; eligibility = Companies Act incorporation, net‑worth norms, and “fit & proper” criteria for promoters.
  • Perpetual Validity: CoA granted perpetually, subject to compliance; RBI retains power to restrict/revoke.
  • Investment Restrictions: No fresh investments from FATF non‑compliant jurisdictions to prevent undue influence.
  • Voluntary Surrender & Cooling Period: Structured exit process; one‑year cooling‑off for rejected/revoked/surrendered entities.
  • Applicability: New applicants + existing PSOs; prior approvals deemed valid under new Directions.

Question:

Q.1 What is the name of the RBI portal through which payment system authorisation applications can be submitted?
a) e-Kuber
b) PRAVAAH
c) Sarthi
d) FinNet

Answer: b) Under the new framework, entities can apply for authorisation at any time through RBI's PRAVAAH portal.

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