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Review the following statements about the Payment and Settlement Systems Act, 2007 (PSS Act):
- The Act empowers the Reserve Bank of India (RBI) to regulate, oversee, and manage payment systems across the country.
- It permits foreign entities to operate payment systems in India without needing prior approval from the RBI.
- The Act authorizes the RBI to impose financial penalties and revoke licenses in cases of regulatory non-compliance.
How many of the above statements are correct?
a) Only one
b) Only two
c) All three
d) None
Solution: b)
Statement 1 is correct: The RBI has been given full authority under the PSS Act, 2007, to regulate, supervise, and control payment and settlement systems in India.
Statement 2 is incorrect: Foreign entities cannot operate payment systems in India without RBI authorization. They must obtain specific approvals under the Act.
Statement 3 is correct: The RBI can impose penalties, revoke authorizations, and take enforcement actions against payment system operators violating regulations.
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