Payment and Settlement Systems (PSS) Audit
A Technical Audit of Payment and Settlement Systems (PSS) involves an in-depth assessment of the technology infrastructure, processes, and security measures employed in payment and settlement systems. It ensures that these systems are robust, efficient, and compliant with regulatory standards, safeguarding the integrity and reliability of financial transactions.
With the escalating trend toward cashless transactions, the heightened concerns surrounding the security of customer data have become increasingly paramount. This has placed a substantial emphasis on the accountability of service providers facilitating such transactions.
In light of the increasing popularity of cashless transactions, concerns about the security of customer data and the accountability of service providers facilitating such transactions have grown substantially. Prioritizing the welfare of the common populace and recognizing the potential risks associated with virtual transaction methods, the Reserve Bank of India (RBI) has established a comprehensive framework for payment system providers. This framework aims to ensure that customers can rely on secure and risk-free transaction methods.
Regulatory Oversight by RBI:
Responsible for overseeing the Banking Payment and Settlement System in India under the Payment Settlement Act of 2007, the RBI plays a crucial role. The RBI grants a certificate of authorization to companies establishing and operating payment systems in India. To maintain this authorization, payment companies must adhere to specified RBI requirements, ensuring that the technology employed in operating the payment system is secure, efficient, and aligns with approved process flows. An RBI Payment and Settlement Systems (PSS) audit is conducted to assess various aspects, including security and controls, hardware, operating systems, applications, access controls, and disaster recovery.
Covered Systems Under the Audit:
The audit procedure encompasses a range of systems vital to the payment landscape, such as:
Electronic Clearing Service Credit, Electronic Clearing Service Debit, Electronic Funds Transfer, Regional Electronic Clearing Service, Real-Time Gross Settlement System, Pre-paid Payments System, Mobile Banking System
Key Requirements:
Periodic Auditing: All payment systems authorized under the Payment and Settlement Systems Act of 2007 must undergo periodic audits of their systems.
Operational Compliance: System providers must operate payment systems in adherence to the provisions of the PSS Act and relevant regulations.
Transparent Disclosures: System providers are obligated to disclose terms and conditions, including charges and liability limitations, to existing and potential participants.
Technology Safety: Audits should ensure that the technology deployed for payment system operation is secure, efficient, and aligns with the approved process flow.
Scope of System Audits: Evaluation encompasses hardware, structure, operating systems, and critical applications, ensuring comprehensive system scrutiny.
Contractual Adherence: System providers must abide by the contracts governing relationships between system participants and relevant operation rules and regulations.
Security Measures: Services should include robust security and controls, enhanced access controls, disaster recovery planning, and personnel training.
The services should also include security and controls to be in place, increased access controls in key applications, a proper disaster recovery plan, training of personnel managing systems and applications, among other things.
Why Work with us?
CERT-IN Empaneled Security Auditor
CERT-In empanels CEREIV for digital security verification, validating organizational readiness and system robustness.
Flexible Delivery
The CEREIV team understands the importance of flexibility in test scheduling, ensuring optimal results for customers.
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