Source: ET
Context: The Reserve Bank of India (RBI) has released a draft of ‘Master Directions on Cyber Resilience and Digital Payment Security Controls for Payment System Operators.
What are Payment System Operators (PSOs)?
Payment System Operators (PSOs) are entities that facilitate the movement of funds between payers and payees in electronic payment systems. They provide the necessary infrastructure and technology to enable various payment transactions, such as online payments, card payments, mobile payments, and electronic fund transfers.
Examples: Popular PSOs like PayPal, RuPay, Visa, Mastercard, and Paytm act as intermediaries in processing and settling payments between buyers and sellers in online transactions.
About the guidelines:
- The proposed guidelines require PSOs to implement inventory management, approved cybersecurity measures, and crisis management plans, and comply with Basel standards.
- PSOs will have to report any unusual incident including those involving cyber-attacks, internal fraud etc. to RBI within six hours of detection.
- Provisions of these directions shall apply to all authorised non-bank PSOs.
- The Board of PSOs has been made responsible for ensuring adequate oversight over information
Aim of the guidelines: These measures are intended to improve cyber safety and protect digital payment systems.
