India

The Payment and Settlement Systems Act of 2007 is in full operation as India’s primary legislation that ensures security, efficiency, and irrevocability of all electronic fund transfers, card networks, and payment settlement structures. Working under the regulatory control of the Reserve Bank of India and the new Payment Regulatory Board, the Act confers legitimacy to auto-netting procedures and makes errors in auto-debit transactions a criminal offense under Section 25. The structure saw a major revamp after the passing of the Taxation and Other Laws (Amendment) Act in August 2026, which abolished the zero fee requirement for all electronic transactions, creating the framework for charging a nominal Merchant Discount Rate (MDR) above ₹2,000 for large-value corporate and merchant UPI payments, while keeping consumer daily transfers free of cost.