International Financial Services Centres Authority (IFSCA) issued new regulations on July 12, 2024, under Notification IFSCA/GN/2024/005, to govern the Board for Regulation and Supervision of Payment and Settlement Systems. These regulations, which come into effect upon publication in the Official Gazette, establish the Board’s composition, duties, powers, and operational procedures. The Board, chaired by the IFSCA Chairperson and comprising Whole Time Members and up to three nominated Members, is responsible for regulating and supervising payment systems within International Financial Services Centres (IFSCs). Its functions include policy formulation, standards setting, authorization of payment systems, membership criteria determination, administration of regulations, and consumer protection. The Authority will provide necessary resources, and the Board must report quarterly on its activities. Sub-Committees and Advisory Committees may be formed to support the Board, which must meet at least quarterly with a quorum of three Members, including the Chairperson and one nominated Member.
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
NOTIFICATION
Gandhinagar, the 12th July, 2024
International Financial Services Centres Authority (Board for Regulation and Supervision of Payment and Settlement Systems) Regulations, 2024
IFSCA/GN/2024/005.—In exercise of the powers conferred by sub-section (1) of section 28 read with sub-section (1) of section 12 and sub-section (1) of section 13 of the International Financial Services Centres Authority Act, 2019 (50 of 2019); read with sub-section (2) of section 3 and sub-section (1) read with clause (a) of sub- section (2) of section 38 of the Payment and Settlement Systems Act, 2007(51 of 2007), the International Financial Services Centres Authority hereby makes the following regulations, namely:
Short title and commencement
1. (1) These regulations may be called the International Financial Services Centres Authority (Board for Regulation and Supervision of Payment and Settlement Systems) Regulations, 2024.
(2) They shall come into force on the date of their publication in the Official Gazette.
Definitions
2. (1) In these regulations, unless the context otherwise requires, the terms defined herein shall bear the meanings as assigned to them below, and their cognate expressions shall be construed accordingly –
a. “Act” means the Payment and Settlement Systems Act, 2007 (51 of 2007);
b. “Authority” means the International Financial Services Centres Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019 (50 of 2019);
c. “Board” means the committee of the members of the Authority known as the Board for Regulation and Supervision of Payment and Settlement Systems constituted under sub-section 2 of section 3 of the Act;
d. “Member” means a member of the Board;
e. “International Financial Services Centre” shall have the meaning assigned to it in clause (g) of sub-section (1) of section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019);
(2) Words and expressions used and not defined in these regulations but defined in the Act or the Reserve Bank of India Act, 1934 (2 of 1934) or the International Financial Services Centres Authority Act, 2019 (50 of 2019) or any rules or regulations made thereunder shall have the same meanings respectively assigned to them in those Acts, rules or regulations or any statutory modification or re-enactment thereto, as the case may be.
Composition of the Board
3. (1) There shall be a committee of the members of the Authority to be known as Board for Regulation and Supervision of Payment and Settlement Systems.
(2) The Board shall consist of the following Members, namely:
a. Chairperson of the Authority who shall be the Chairperson of the Board;
b. Whole Time Members of the Authority;
c. Not more than three Members of the Authority nominated by the Chairperson of the Authority.
(3) The Chairperson of the Authority shall designate a Whole Time Member of the Authority as the Vice-Chairperson of the Board
Duties, powers and function of the Board
4.(1) Subject to the provisions of the Act, the Board shall exercise the powers, perform the functions and discharge the duties accorded on it by the Authority, including but not limited to, in relation to the regulation and supervision of the payment systems in the International Financial Services Centres under the Act.
(2) In particular and without prejudice to the generality of the foregoing provisions, the powers and functions of the Board shall include the following matters, namely: –
a. the laying down of the policies relating to the regulation and supervision of the payment systems including electronic, non-electronic, domestic and cross-border payment systems affecting transactions in International Financial Services Centres;
b. the laying down of the standards for payment systems;
c. the authorisation of the payment systems;
d. the determination of the criteria for membership of the payment systems including continuation, termination and rejection of membership;
e. overseeing the administration of regulations and guidelines framed under the Act for the purposes of the above matters including the directions issued by the Authority from time to time to the operators and system participants of the payment systems besides taking such action as may be deemed necessary for ensuring the compliance;
f. recommending necessary administrative structure for ensuring effective regulation and supervision of the payment systems;
g. safeguarding and protecting the interests of consumers and overall safety and soundness of the payment systems;
h. such other matters as are deemed necessary for the effective regulation and supervision of payment systems.
Assistance to the Board
5. The Authority shall provide necessary assistance, including resources to the Board for all or any of the purposes set out in these regulations.
Vacation of Office
6. A Member nominated under clause (c) of sub-section (3) of section 3 of the Act shall cease to hold office if he absents himself from three consecutive meetings of the Board, without the leave of the Chairperson .
Powers on behalf of the Board by whom to be exercised: –
7. The powers of the Board may be exercised by the following persons to the extent mentioned hereunder: –
(a) The Chairperson and in his absence the Vice-Chairperson may also exercise all powers and do all acts and things, which may be exercised or done by the Board;
(b) Without prejudice to the provisions of clause (a), the Chairperson may, by general or special order, delegate to a Vice-Chairperson or Member, subject to such conditions and limitations, if any, as may be specified in the order, any powers exercisable by the Chairperson under these regulations, as the Chairperson may deem necessary, for the efficient administration of the functions of the Board.
Meetings of the Board and Quorum
8. (1) The Board shall ordinarily meet at least once in three months in such manner as may be decided by the Chairperson from time to time.
(2) Members shall be given sufficient notice to enable them to attend the meetings.
(3) The quorum for holding a meeting of the Board shall be three Members and shall include the Chairperson and at least one Member nominated under clause (c) of sub-regulation (2) of regulation 3.
(4) Save as otherwise provided in these regulations, the provisions of International Financial Services Centres Authority (Procedure for Authority Meetings) Regulations, 2020 shall, pari-materia, apply to the meetings of the Board.
Constitution of Sub-Committees and Advisory Committees
9. (1) The Board may constitute Sub-Committees or Advisory Committees for providing assistance or advice in the performance of its functions, as may be considered necessary from time to time.
(2) A Sub-Committee or Advisory Committee shall have power to invite persons with experience in the field of Payment and Settlement Systems to attend the meetings of that Committee.
Report to the Authority
10. The Board shall submit a report on its functioning to the Authority on a quarterly basis.
K. RAJARAMAN, Chairperson
[ADVT.-III/4/Exty./300/2024-25]
