The Reserve Bank of India published Master Directions on Authorisation to Operate a Payment System on June 15, 2026. The framework consolidates guidelines issued between 2015 and 2023 into a single regulatory document. It covers eligibility criteria, licence validity, voluntary surrender, and enforcement provisions. All payment system operators in India, including NPCI which operates UPI and IMPS, fall under the new framework.
The framework introduces perpetual validity for PSO authorisations. Operators meeting regulatory requirements and free of supervisory concerns will receive perpetually valid licences. Previously, operators held time-limited authorisations requiring periodic renewal. Operators with identified deficiencies will receive one-year renewals until issues are resolved. Authorisation remains available on-tap throughout the year without fixed application windows.
The directions establish a formal voluntary surrender process requiring operators to settle all outstanding liabilities and obtain auditor-certified confirmation before surrendering licences. A one-year cooling-off period applies to entities whose authorisation was revoked, not renewed, or voluntarily surrendered. The RBI strengthened fit-and-proper criteria for promoters and directors covering financial integrity, criminal history, and regulatory restrictions. FATF-based restrictions on investment from non-compliant jurisdictions are retained, with aggregate voting rights for such investors capped below 20 percent.