22. The Payment Service Provider shall maintain complete, up-to-date records of their Third-Party Service Relationship that are identified under sub-regulation 1 of regulation 18. =============... ... ...

21. The Payment Service Provider shall require the Third-party Service Providers to have clearly defined processes for identifying, investigating, remediating and notifying Payment Service Provider in a timely manner of incidents that impact the Third-party Service Provider's ability to deliver agreed-upon services. =============... ... ...

20. (1) A Payment Service Provider shall identify, document and to the extent practically feasible, test their strategy for exiting Third-party Service Relationship involving critical services. (2) Such strategy shall cover a range of scenarios including planned migration of services, but also include adverse events like: (a) Violation or breach of applicable laws, regulations or contractual terms; (b) Deterioration in the quality of the services provided; (c) W... ... ...

19. (1) A Payment Service Provider shall conduct appropriate planning and due diligence before entering into a Third-Party Service Relationship arrangement for a critical service while ensuring that the level of due diligence is proportionate to the criticality of the relevant service. (2) Factors that are to be considered in the due diligence process shall, inter-alia, include: a. Operational and technical capability and track record, including (if applicable) drawing on any pri... ... ...

CHAPTER V RISK MANAGEMENT OF THIRD-PARTY SERVICE RELATIONSHIPS 18. (1) A Payment Service Provider shall put in place a risk-based framework to assess the criticality of services that they receive or plan to receive from a Third-party Service Provider. (2) Such assessment shall be undertaken at the time of commencement of operations and at regular intervals thereafter to identify critical services. (3) The framework under sub-regulation (1) shall consider various factors relevant ... ... ...

17. (1) A Payment Service Provider shall develop a policy for management of risks including risk management policies, procedures, and systems that enable it to identify, measure, monitor, and manage the range of risks that arise in or are borne by it while providing payment service(s). Such policy shall be subject to periodic review by the Board of the Payment Service Provider. (2) A Payment Service Provider shall establish a robust operational risk-management framework with appropriate syste... ... ...

CHAPTER IV GOVERNANCE 16. (1) A Payment Service Provider shall comprehensively and clearly document its governance arrangements i.e., the framework under which its Board and senior management shall function. (2) The governance arrangements shall, at minimum, include the following components namely: a. role and composition of the Board and any committees or sub-committees; b. senior management structure; c. reporting lines between management and the Board; ... ... ...

CHAPTER III COMMENCEMENT OF OPERATIONS 15. (1) The Payment Service Provider shall commence its operations within six months from the date of issuance of Certificate of Authorisation. (2) The Payment Service Provider may submit an application for extension of time, if instructed to do so by way of a resolution passed by its board of directors, for commencing operations at least two months before the latest date of commencement as stipulated under sub-regulation (1). (3) The applicatio... ... ...

14. (1) Where a Payment Service Provider has surrendered its authorisation or the authorisation of a Payment Service Provider has been revoked by the Authority, the Authority may apply the security deposit, if any, mentioned in sub-regulation (4) of regulation 10, to pay any sums outstanding and claimed by Payment Service Users who are customers of the Payment Service Provider. (2) Where a Payment Service Provider has surrendered its authorisation or the authorisation of a Payment Service... ... ...

13. (1) A Payment Service Provider may file an application with the Authority, in compliance with the conditions and in the format provided in Schedule III, for surrender of the authorisation granted to it. (2) After consideration of the application made under sub-regulation (1), and on being satisfied that the surrender of authorisation is unlikely to cause any material adverse effect to the financial ecosystem of the IFSC or the interests of the Payment Service Users, the Authority may ... ... ...

12. (1) If the Authority is satisfied that a Payment Service Provider has failed to comply with any of the conditions of the authorisation, provision/s of these regulations, orders or directions of the Authority, or that the activity of the Payment Service Provider is being carried on in a manner prejudicial to the interests of the Payment Service Users, it may revoke the authorisation granted to such Payment Service Provider (2) The order for revocation of the authorisation shall be issu... ... ...

11. : (1) If the Authority is of the opinion that the authorisation cannot be granted due to certain deficiencies, it shall communicate the same to the Applicant advising it to rectify those within thirty days from the date of communication. (2) If the Applicant fails to rectify such deficiencies within the specified time, the Authority shall refuse to grant authorisation and communicate the same to the Applicant. Provided that no such refusal shall be made without giving the Applicant ... ... ...

10. (1) The Authority may, on being satisfied that the Applicant has complied with the conditions laid down in these regulations and is eligible to act as a Payment Service Provider, grant a Certificate of Authorisation to the Applicant subject to such conditions as the Authority may deem fit. (2) The Certificate of Authorisation granted under sub-regulation (1) shall be valid unless revoked by the Authority or surrendered by the Payment Service Provider. (3) Every application for auth... ... ...

9. (1) After considering an application for authorisation, if the Authority is satisfied that the said application, prima facie, satisfies the conditions for granting authorisation, the Authority may issue an "in-principle approval" letter to the Applicant and shall require the Applicant to satisfy such conditions as may be specified by the Authority in the "in-principle approval" letter before grant of authorisation. (2) Grant of authorisation to an Applicant who has been issued "in-prin... ... ...

8. While evaluating an application under sub-regulation (1) of regulation 4, the Authority shall take into account all matters which it deems relevant for grant of authorisation, including, whether: a. Relevant persons of the Applicant possess adequate experience, including an existing authorisation to provide similar services in any other jurisdiction, in the activities that it seeks to provide as a Payment Service Provider; b. the applicant possesses the necessary infrast... ... ...

7. (1) An Applicant or a Payment Service Provider shall ensure that its directors, Key Managerial Personnel and persons exercising control over it (hereinafter collectively referred to as "Relevant Persons") satisfy the "fit and proper requirements" ('FPR'), specified in Schedule II of these regulations. (2) The Authority may undertake an evaluation of any Relevant Person(s) under the FPR during the time of processing the request for authorisation as a Payment Service Provider or any time... ... ...

6. (1) A Payment Service Provider shall, inter-alia, comply with the minimum net worth requirements, as specified in Schedule V of these regulations, on an ongoing basis. (2) The minimum net worth requirement of a Payment Service Provider shall be reviewed by the Authority from time to time to ensure their continued effectiveness and relevance and the Authority may also make adjustments to the minimum net worth requirements as needed to address emerging risks and changes in the financial ... ... ...

5. An Applicant making an application for authorisation under regulation 4 shall be required to be incorporated as a Company with its registered office in IFSC. =============... ... ...

4. (1) Any person desirous of providing Payment Services in or from IFSC (hereinafter referred to as "the Applicant") shall submit an application to the Authority, for grant of authorisation as a Payment Service Provider, in the format and in the manner as may be specified by the Authority; Provided that the persons specified in Schedule IV of these regulations shall be exempted from the requirement of obtaining authorisation under these regulations. (2) The application under sub-regul... ... ...

CHAPTER II AUTHORISATION TO PAYMENT SERVICE PROVIDERS 3. Any person seeking to provide Payment Services in or from IFSC shall require certificate of authorisation under these regulations. =============... ... ...