The Reserve Bank of India (“RBI”) regulates payment and settlement systems (including digital payments) in India. In recent years, India has witnessed a significant evolution in its digital payment regulations, reflecting the country’s growing reliance on electronic transactions. The RBI has played a pivotal role in shaping this landscape by introducing various guidelines and frameworks to ensure the security, transparency, and efficiency of digital payment systems. The RBI’s regulations have covered various aspects such as Know Your Customer norms for users, interoperability of payment systems, data protection, and fraud prevention measures. The introduction of the Unified Payments Interface has revolutionized digital payments in India, enabling seamless real time transactions between different banks and payment platforms. Additionally, the Government’s push towards a cashless economy has led to ongoing developments in digital payment regulations to keep pace with the evolving technology landscape.

The introduction of the Payment and Settlement Systems Act, 2007 (“PSS Act”) brought digital payment platforms under the purview of the RBI, ensuring better oversight and consumer protection. Moreover, the issuance of guidelines for digital wallets, prepaid instruments, peer-to-peer lending platforms, payment aggregators, etc. has provided clarity and streamlined operations in the digital finance ecosystem. The evolution of digital payment regulations reflects India’s commitment to fostering innovation while safeguarding the interests of all stakeholders, propelling the nation towards a more inclusive and digitally empowered financial landscape.