RBI Payment and Settlement Systems Security Audit: Ensuring Compliance and Cybersecurity

The Payment and Settlement Systems in India are used for financial transactions and are covered by the Payment and Settlement Systems Act of 2007 (PSS Act). The audit ensures that payment systems in India are technologically advanced as far as possible. The Reserve Bank of India is obliged to take several initiatives aimed at strengthening the Indian e-payments system and encouraging citizens to make use of it, given its role as one of the country’s leading financial and regulatory institutions.

RBI is working on a minimal payment and settlement system, which it describes as the bunker” equivalent of modern payments. This system shall be governed by its infrastructure independently of technology that underpins existing payment systems, for example, UPI, NEFT, and RTGS. The Reserve Bank of India stated that such a thin and portable payment system could guarantee almost zero disruption to the payments and settlement systems in this country, maintaining a continuous flow of liquidity for the economy through the smooth operation of important payment services like bulk payments, interbank payments, and delivery of cash to participating institutions.