Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q2: What is the primary legal foundation for the regulation and supervision of payment and settlement systems in India?

A
The Reserve Bank of India Act, 1934
B
The Banking Regulation Act, 1949
C
The Payments and Settlement Systems Act, 2007
D
The Information Technology Act, 2000
✅ Correct Answer: C
The Payments and Settlement Systems Act, 2007 (PSS Act, 2007) is the primary legal foundation for this.
It provides the legal framework for the regulation and supervision of all payments and settlement systems in India by the RBI.
Understanding this legal basis is essential for interpreting the RBI's Payment Systems Report - June 2025.