What are the objectives of Payment and Settlement System Act, 2007?

The Parliament of India enacted the Payment and Settlement Systems Act, 2007 with an objective to provide for the regulation and supervision of payment systems in India and to designate Reserve Bank of India as the authority for that purpose and for matters connected therewith or incidental thereto. Payment and Settlement Systems Act, 2007 prohibits a person to commence or operate a payment system except with an authorization issued by the Reserve Bank of India. The Act also provides for the settlement effected under the rules and procedures of the system provider to be treated as final and irrevocable. Under the PSS Act, 2007, no person shall commence or operate a payment system except with an authorization issued by the Reserve Bank of India. Similarly Reserve Bank of India has the powers to revoke the authorization granted to any person if it contravenes any of the provisions of PSS Act or does not comply with the regulations or fails to comply with the orders or directions issued by the RBI or operates the payment system contrary to the conditions subject to which the authorization was issued.