What are the factors which the Reserve Bank will consider while deciding on an application submitted for authorization?
Ans. The Reserve Bank will consider factors like the need for the proposed payment system, the technical standards and design of proposed system, the security procedures and terms and conditions of operation of the proposed system, the procedure for netting of payment instructions, risk management processes, financial status of the applicant, experience of management and integrity of applicant, consumer interests, monetary and credit policies and other relevant factors while deciding on an application for authorization for commencing or operating a payment system (Section 7 of PSS Act, 2007). The Reserve Bank will endeavour to dispose of all applications received for authorization within six months from the date of their receipt.
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- What are the factors which the Reserve Bank will consider while deciding on an application submitted for authorization?
