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    Question

    What are the conditions under which a system provider

    can make changes to the structure or operation of a payment system as per the Payment and Settlement Systems Act?
    A With prior approval of the Reserve Bank and a 15-day notice to system participants Correct Answer Incorrect Answer
    B With prior approval of the Reserve Bank and a 30-day notice to system participants Correct Answer Incorrect Answer
    C With prior approval of the Reserve Bank only, no notice required Correct Answer Incorrect Answer
    D Without Reserve Bank approval but with a 30-day notice to system participants Correct Answer Incorrect Answer
    E Without Reserve Bank approval or notice to system participants Correct Answer Incorrect Answer

    Solution

    Section 11. Notice of change in the payment system.—(1) No system provider shall cause any change in the system which would affect the structure or the operation of the payment system without— (a) the prior approval of the Reserve Bank; and (b) giving notice of not less than thirty days to the system participants after the approval of the Reserve Bank: Provided that in the interest of monetary policy of the country or in public interest, the Reserve Bank may permit the system provider to make any changes in a payment system without giving notice to the system participants under clause (b) or requiring the system provider to give notice for a period longer than thirty days.

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