The Reserve Bank on Saturday came up with a modified oversight framework for financial market infrastructure and retail payment systems with a view to ensure safety and stability of payment structure.
"This document, by enhancing supervisory transparency and disclosure, would enable better regulatory compliance by payment systems operators, and enhance customer awareness, eventually contributing to the safety and stability of our payment systems," the RBI said while releasing version 2.0 of Oversight for Financial Market Infrastructure and Retail Payment Systems.
The RBI, as per the document, will carry out the oversight activity through monitoring existing and planned systems, assessment of the FMIs and RPSs against the oversight objectives, and inducing change for improvements, where necessary.
"It is important that FMIs as well as retail payment systems are resilient to disruption, including financial and operational shocks, so that they continue to provide critical service to the economy and support wider financial stability and economic development," the document said.
The central bank has an important role to play in ensuring smooth functioning of payments systems, it added.
The FMI generally refers to systemically important payment systems (SIPS), Central Securities Depositories (CSDs), Securities Settlement Systems (SSSs), Central Counter Parties (CCPs), and Trade Repositories (TRs) that facilitate the clearing, settlement and recording of financial transactions.
RPS refers to transactions effected through mobile phones, internet, ATMs, PoS networks and with contactless technology (card payments and tokenisation), electronic billing and use of various systems and platforms for making instant payments.