RBI Issues Master Directions on Payment System Authorisation

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  • Last Updated on 22 June, 2026

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RBI Master Directions

Press Release no. 2026-2027/463; Dated: 15.06.2026

The Reserve Bank of India (RBI) has issued Master Directions on Authorisation to Operate a Payment System, consolidating existing regulatory instructions and guidelines governing the authorisation of Payment System Operators (PSOs).
The directions provide a comprehensive and unified framework governing the grant, continuation, and surrender of authorisation to operate payment systems in India.

1. Unified Framework for Payment System Authorisation

The Master Directions bring together various existing guidelines into a single regulatory framework to facilitate greater clarity and consistency in the authorisation process for Payment System Operators.

The framework applies to entities seeking authorisation under the Payment and Settlement Systems Act, 2007.

2. Eligibility Criteria for Authorisation

The directions prescribe the eligibility requirements applicable to entities seeking authorisation to operate a payment system.

These requirements provide the basis for assessing applicants’ suitability before granting authorisation.

3. Perpetual Validity of Authorisation

The Master Directions provide for perpetual validity of authorisation licences granted to eligible Payment System Operators.

Accordingly, authorised entities will not be required to seek periodic licence renewal, subject to continued compliance with applicable regulatory requirements.

4. Voluntary Surrender of Authorisation

The framework also lays down the procedure for:

  • Voluntary surrender of authorisation; and
  • Discontinuation of payment system operations by authorised entities.

The provisions are intended to ensure an orderly exit process while safeguarding the interests of users and participants.

5. Cooling-Off Requirements for PSOs

The directions introduce provisions relating to cooling-off requirements applicable to Payment System Operators. These requirements form part of the broader governance and regulatory framework governing authorised entities.

6. Effective Date

The Master Directions have come into force with immediate effect.

Accordingly, entities operating or seeking to operate payment systems must comply with the requirements prescribed under the new consolidated framework.

7. Objective of the Directions

The Master Directions seek to streamline and simplify the regulatory framework governing payment system authorisations by consolidating existing instructions into a single reference document. The unified framework is expected to improve regulatory clarity, strengthen governance standards and facilitate efficient supervision of Payment System Operators in India’s digital payments ecosystem.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied