Master directions on Cyber Resilience and Digital Payment Security

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July 2, 2023

Master directions on Cyber Resilience and Digital Payment Security

Reserve Bank of India’s draft master directions on cyber resilience and digital payment security controls for payment system operators (PSOs)


  • The Reserve Bank of India (RBI) has released a draft of the Master Directions on Cyber Resilience and Digital Payment Security Controls for Payment System Operators (PSOs).
  • These directions aim to provide regulatory guidelines for PSOs in managing cybersecurity risks and ensuring the security and resilience of digital payment transactions.

Definition of Payment System Operators (PSOs)

  • PSOs are legal entities responsible for operating payment systems.
  • They provide services by operating on various models and often outsource payment and settlement-related activities to other entities.
  • Examples of PSOs include Google Pay, Clearing Corporation of India, National Payments Corporation of India, and others.

Governance Mechanisms

  • The draft emphasizes the need for robust governance mechanisms to effectively manage cybersecurity risks.
  • PSOs are expected to establish and maintain a comprehensive cybersecurity framework.
  • Information security risks and vulnerabilities should be addressed through this framework.

Baseline Security Measures

  • The draft specifies baseline security measures that PSOs should implement.
  • These measures aim to protect digital payment systems from cybersecurity threats.
  • PSOs must implement controls related to data security, access controls, incident response, and business continuity planning.

Resilience to Cybersecurity Risks

  • The directions focus on ensuring that PSOs are resilient to both traditional and emerging information systems and cybersecurity risks.
  • PSOs are required to conduct periodic risk assessments and implement appropriate controls to mitigate identified risks.
  • Continuous monitoring and review of cybersecurity measures are emphasized.

Safeguarding Digital Payment Transactions

  • The directions prioritize enhancing the security of digital payment transactions.
  • PSOs must implement strong authentication mechanisms, encryption standards, and secure communication protocols.
  • The draft highlights the importance of robust fraud monitoring and reporting mechanisms.

The Conclusion

  • The release of the draft Master Directions by the RBI emphasizes the increasing importance of cybersecurity in the digital payment ecosystem.
  • By providing clear guidelines and expectations for PSOs, the RBI aims to strengthen the security posture of payment systems and ensure the resilience of digital payment transactions in India.

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