Section 18 of PSSA : Section 18: Power Of Reserve Bank To Give Directions Generally

Explanation using Example

Imagine a scenario where an increase in fraudulent transactions is observed in the digital payment systems across the country. To combat this, the Reserve Bank of India (RBI), utilizing its powers under Section 18 of The Payment and Settlement Systems Act, 2007, decides to implement new security protocols. The RBI issues a directive requiring all digital payment system providers to adopt a two-factor authentication process for every transaction. This directive applies to all electronic payment systems and aims to enhance the security of digital transactions, thereby protecting the public interest and ensuring the integrity of the payment systems.