CS Professional · Banking and Insurance - Laws and Practice · Digital Banking
A fintech payment system operator functions wholly within an International Financial Services Centre (IFSC) set up under the Special Economic Zones Act, 2005. Under the Payment and Settlement Systems Act, 2007, which authority exercises the powers relating to financial products, services and institutions permitted in the IFSC?
The International Financial Services Centres Authority exercises these powers. The Payment and Settlement Systems Act, 2007 states that the Reserve Bank's powers under the Act do not extend to an IFSC and are instead exercisable by the IFSCA for financial products, services and institutions permitted there.
- AThe Reserve Bank, since the Act is its statute and its powers extend to the IFSC
- BBoth the Reserve Bank and the IFSCA jointly, in every case
- CThe International Financial Services Centres Authority, as the Reserve Bank's powers do not extend to the IFSCCorrect
- DThe Central Government through the Ministry of Commerce only
Explanation
Section 34B provides that, notwithstanding any other law, the Reserve Bank's powers under the Act do not extend to an IFSC and are exercisable by the IFSCA, in so far as regulation of financial products, services and institutions permitted in the IFSC is concerned. Joint exercise is not provided.
Did you get it right without looking?
One question tells you little. A timed set on Digital Banking shows your real accuracy, how long you take and where you lose marks.
More Digital Banking questions
- Vikram, a subscriber, accepts a DSC issued to him. Under the Information Technology Act, 2000, what does he certify to those who reasonably …
- Hackers breached Sarthak Bank's systems, and the Adjudicating Officer ordered compensation under the IT Act, 2000. The police also want to p…
- Mehta Textiles Pvt Ltd's authorised director, Mr. Rakesh Mehta, obtained a Digital Signature Certificate (DSC) and then authorised its publi…
- Meera authenticates an electronic record by affixing her digital signature. Mohan, a stranger holding only her public key, wants to check it…
- Which of the following is NOT among the matters a subscriber certifies to those who reasonably rely on the DSC upon accepting it under Secti…
- A Certifying Authority suspends the Digital Signature Certificate of Anita Traders in public interest. It wants the suspension to continue f…