On Saturday, the Reserve Bank Of India came up with changes in the oversight framework for financial market infrastructure and retail payment systems by considering the safety and firm of payment structure.
The RBI said “This document, by enhancing supervisory clarity and disclosure, will help in enable better regulatory compliance by payment systems operator, at last contributing to the safety and stability of our payment systems,” while disclosing version 2.0 of Oversight for Financial Market Infrastructure and Retail Payment Systems. According to the document, RBI is going to carry out the oversight activity through keeping track of existing and planned systems, evaluation of the FMIs and RPSs against the oversight objectives, and including change for improvements, where required. The scope of the document was limited to oversight activities and tools used for the supervision of the Financial Market Infrastructure (FMIs) prevailing them.
Providing clear, settlement, and recording of financial transactions by Central Counter Parties (CCPs), systemically important payment systems (SIPS), Trade Repositories (TRs), Securities Settlement Systems (SSSs) and Central Securities Depositories (CSDs) refers to FMI. From the past few years, the supervisory thoroughness for FMIs has become better for both offsite and onsite.
A transaction resulting through the internet, ATMs, PoS networks, mobile phones, with contactless technology and platforms for making instant payments refers to RPS.
Due to the remarkable volume of transactions processed in the payment systems, the National Payments Corporation of India (NPCI), the umbrella organization for RPSs in the country has emerged as a System-Wide Important Payment System (SWIPS). RPS also has assumed importance, given its acceptance, convenience, and availability of various payment options. Onsite and offsite supervision of RPSs like ATM networks, PPI issuers, MTSS operators, TReDS platforms, card networks, etc. Is done by Reserve Bank of India.
RBI said, in line with the commitment made in the Reserve Bank’s Payment Systems and Settlement System Vision 2019-2021, the Oversight Framework for Financial Market Infrastructure (FMIs) and Retail Payment Systems (RPSs) has been updated. It contains detailed oversight that aims the process of supervision of Reserve Bank and assessment methodology also of FMIs and SWIPs under PFMIs.