About: The PSS Act, 2007 received the assent of the President on 20th December 2007 and came into force with effect from 12th August 2008.
Detail: The Payment and Settlement Systems Act 2007, set up by the RBI, provides for the regulation and supervision of payment systems in India and designates the apex institution (RBI) as the authority for that purpose and all related matters.
To exercise its powers and perform its functions and discharge its duties, the RBI is authorized under the Act to constitute a committee of its central board, which is known as the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS). The Act also provides the legal basis for ‘netting’ and ‘settlement finality’.
