In exercise of the powers conferred by sub section 1 of section 28 read with sub section

REGD. No. D. L.-33004/99 The Gazette of India CG-GJ-E-21102024-258101 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 823] NEW DELHI, THURSDAY, OCTOBER 17, 2024/ASVINA 25, 1946 INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY NOTIFICATION Gandhinagar, the 14th October, 2024 International Financial Services Centres Authority (Payment and Settlement Systems) Regulations, 2024 F. No. IFSCA/GN/2024/009.—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); and section 34 B read with sub-section (1) and clauses (b) to (f) of sub-section (2) of section 38 of the Payments and Settlement Systems Act, 2007 (51 of 2007), the International Financial Services Centres Authority hereby makes the following regulations namely: - CHAPTER I PRELIMINARY 1. Short title and commencement. - (1) These regulations may be called the International Financial Services Centres Authority (Payment and Settlement Systems) Regulations, 2024. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Objective. - These regulations lay down the process of authorisation and operations of Payment Systems in International Financial Services Centres. 3. Definitions. - (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 and variations shall be construed accordingly- (a) 'Act' means the Payment and Settlement Systems Act, 2007 (51 of 2007); (b) 'Authorisation Certificate' means the certificate containing the authorisation issued by the Authority under sub-section (1) of Section 7 of the Act; (c) '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); (d) 'Board' means the committee 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; (e) 'International Financial Service Centre' shall have the meaning assigned to it under 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 Banking Regulations Act, 1949 (10 of 1949) 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. CHAPTER II AUTHORISATION OF PAYMENT SYSTEMS 4. Application for authorisation for commencing or carrying on a Payment System. - (1) Every person desirous of commencing or carrying on a Payment System in an International Financial Services Centre (hereinafter referred to as 'applicant') shall submit an application under sub-section (1) of Section 5 of the Act to the Authority for grant of authorisation under sub-section (1) of section 7 of the Act. (2) The application under sub-regulation (1) shall be made in such form and manner as may be specified by the Authority. (3) The application under sub-regulation (1) shall be accompanied by a non-refundable application fee of USD 1000. 5. Grant of in-principle approval. - (1) After considering the application for the grant of authorisation under sub-regulation (1) of regulation 4, the Authority may issue an “in-principle approval" requiring the applicant to satisfy the conditions of sub-section (1) of section 7 of the Act and such other conditions, as may be stipulated by the Authority. (2) The issuance of “in-principle approval" by the Authority shall not automatically entitle the applicant for authorisation. 6. Grant of Authorisation Certificate. - (1) On examination of the application, if the Authority is satisfied that the conditions under sub-section (1) of Section 7 of the Act are fulfilled, it may issue an authorisation certificate in such form as may be specified by the Authority, to the applicant to commence a Payment System and specify the date on which the authorisation shall take effect. (2) The authorisation certificate shall be issued upon receipt of a non-refundable fees as may be specified by the Authority from time to time for each sub-category of payment system operators. (3) The Authority, while granting authorisation, may impose additional conditions as it may deem fit, and the authorisation so granted shall be in force subject to satisfaction of such conditions. (4) The Authority may, if it considers necessary for the proper conduct of the Payment System, require the applicant to furnish a security deposit under clause (d) of sub-section (2) of Section 7 of the Act of such amount as may be specified by the Authority. 7. Exemption from Authorisation. - (1) An application for exemption under proviso (d) to sub-section (1) of section 4 of the Act shall include the rationale under which such exemption is being sought. (2) The Authority shall, after due consideration of the information provided in the application and any other information that may be available with it, decide to accept, with or without conditions or reject the request for exemption and communicate the same to the applicant within a period of ninety days from the date of application. CHAPTER III COMPLIANCE WITH THE STANDARDS 8. Compliance with the Principles for Financial Market Infrastructures (PFMI). - Every System Provider shall comply, on an ongoing basis and to the extent applicable, with the Principles for Financial Market Infrastructure issued by Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) and such other norms as may be specified by the Authority from time to time. CHAPTER IV PAYMENTS INSTRUCTIONS AND DETERMINATION OF STANDARDS 9. Every System Participant, with respect to the format of payment instructions and other matters specified in clauses (a) to (f) of sub-section (1) of Section 10 of the Act, shall be governed by the regulations, guidelines, instructions or directions, as may be issued by the Authority. CHAPTER V RETURNS, DOCUMENTS AND OTHER INFORMATION 10. Submission of returns, documents or other information etc. - Every System Provider shall submit to the Authority such returns, documents and other information as may be required by the Authority from time to time and in such form as specified by the Authority. 11. Furnishing of accounts and Balance Sheet. - (1) Every System Provider shall furnish to the Authority, within three months from the date on which its annual accounts are closed, a copy of its audited balance sheet as on the last date of the relevant year along with a copy of the profit and loss account and also a copy of the Auditor's report. Provided that the Authority may, on an application made by the System Provider, extend the said period of three months for furnishing of returns by a further period not exceeding three months. (2) The System Provider shall also publish a copy of its balance sheet, profit and loss account and Auditor's report submitted to the Authority under sub-regulation (1), on its website. CHAPTER VI MISCELLANEOUS 12. Power to relax strict enforcement of the regulations (1) The Authority, for reasons to be recorded in writing, may in the interest of development of financial market in International Financial Services Centre, relax the strict enforcement of any requirements of these regulations. (2) For seeking relaxation under sub-regulation (1), an application giving details and the grounds on which such relaxation has been sought, shall be filed with the Authority along with a non-refundable fee as may be specified by the Authority. (3) The Authority shall process such application within sixty (60) days of the date of receipt of the application, complete in all respects, including responses to clarifications sought and shall record reasons for acceptance or refusal of the relaxations sought by the applicant. 13. Power to specify norms, procedures, issue clarifications and remove difficulties (1) For the purposes of implementation of these regulations and matters incidental thereto, the Authority may specify norms, procedures, processes, additional requirements, etc. by way of circulars, guidelines or directions. (2) In order to remove any difficulties in the interpretation or application of the provisions of these regulations, the Authority may issue directions through guidance notes or circulars. (3) For the purposes of implementation of these regulations and matters incidental thereto, the Authority may specify norms, procedures, processes etc. by way of circulars, guidelines or directions. 14. Repeal and Savings (1) On and from the commencement of these regulations, the Payment and Settlement Systems Regulations, 2008, issued by the Reserve Bank of India, shall not apply in an International Financial Service Centre'. (2) Notwithstanding anything contained in sub-regulations (1), any action taken or purported to have been taken under the said regulations, including any guidelines, circulars or directions issued thereunder, before the commencement of these regulations shall be deemed to have been done or taken under the corresponding provisions of these regulations. (3) The guidelines, circulars, directions or any other instruction, issued by the Reserve Bank of India, under the regulations mentioned in sub-regulation (1) and to the extent of its applicability, they shall be deemed to have been issued under these regulations unless and until they are superseded or modified by the Authority. K. RAJARAMAN, Chairperson [ADVT.-III/4/Exty./592/2024-25]