Format for providing information by a Payment Service Provider

1 International Financial Services Centres Authority IFSCA-FMPP0BR/3/2023-Banking October 8, 2024 CIRCULAR To, All Payment Service Providers Dear Sir/Madam, Format for providing information by a Payment Service Provider (PSP) 1. In exercise of its powers under regulation 32 of the IFSCA (Payment Services) Regulations, 2024 (“the regulations”), the Authority hereby specifies the format for providing information to the Authority by a Payment Service Provider. 2. The details of the returns to be submitted is provided in Annexure I of this circular alongwith the periodicity of submission of such returns. Instructions for filing the returns are provided in Annexure II to this circular. 3. Auditor’s certificate of Net worth of PSP and Auditor’s certificate on Maintenance of Balance in Escrow Account/s shall be submitted in physical form or in soft copy form with the Unique Document Identification Number (UDIN) and the same shall be addressed to the Chief General Manager, Division of Payment and Settlement, Department of Banking, International Financial Services Centres Authority. 4. PSP’s declaration of Net Worth shall be submitted in physical form and the Authorised signatory for signing this certificate shall be the person/persons so designated by the Board of Directors of the PSP. 5. Other returns (i.e. Form 1A to Form 9), as applicable, shall be accepted in soft copy format (excel sheet) only. The same shall be sent by email to payment-services@ifsca.gov.in. The PSP shall give prior intimation to the Authority of the designated officials (along with their email addresses) who are authorised to submit such returns on behalf of the PSP and any change thereof. 6. Failure to submit the returns within the prescribed time period and/or providing incorrect information in the returns would be treated as a failure to comply with a condition of the authorisation as a PSP and the said PSP shall, inter alia, be liable for action under sub- regulation 1 of regulation 12 of the regulations. 2 7. Any queries relating to the returns shall be submitted only by email to payment- services@ifsca.gov.in. Yours faithfully (Supriyo Bhattacharjee) Chief General Manager Department of Banking 3 Annexure I Returns to be submitted by a Payment Service Provider [See regulation 32] Payment Service /Activity/Service obligation Form and Submission period Time limit for submission PSP’s declaration of Net Worth Annual Within three months of end of a financial year Auditor’s certificate of Net worth of PSP Annual Within six months of end of a financial year Auditor’s certificate on Maintenance of Balance in Escrow Account/s Quarterly Within 15 days of end of a quarter Account issuance service Form 1A – Monthly Form 1B – Half-yearly Form 1C – Annual Within 15 days of end of a month Within 15 days of end of every half year Within 15 days of the end of a financial year Cross- border and intra IFSC money transfer service Form 2A – Monthly Form 2B – Half-yearly Within 15 days of end of a month Within 15 days of end of every half year Merchant acquisition service Form 3A – Monthly Form 3B – Half-yearly Within 15 days of end of a month Within 15 days of end of every half year E-money issuance service Form 4 – Monthly Within 15 days of end of a month Escrow service Form 5 - Monthly Within 15 days of end of a month Safeguarding of applicable funds Form 6 – Monthly Within 15 days of end of a month Information on agents appointed by PSP Form 7 – Half yearly Within 15 days of end of every half year Security of IT systems and other infrastructure Form 8 – Quarterly Within 15 days of end of a quarter Redressal of grievances Form 9 – Quarterly Within 15 days of end of a quarter 4 PSP’s certificate of Net worth (To be submitted by the PSP within three months of end of a financial year ) 1.On behalf of (Name of PSP), I/we certify that the net worth of (Name of PSP) as on …………., arrived at as per the provisions of regulation 6 of the IFSCA (Payment Services) Regulations, 2024 stood at …………. 2. The details for net-worth computation are given below: Computation of net-worth of __________ as on _________ Particulars Amount Equity Share Capital Add : i. Preference shares compulsorily convertible into Equity capital ii. Free Reserves iii. Share Premium Account iv. Capital Reserves (representing surplus arising out of sale proceeds of assets) Less : i. Revaluation Reserves ii. Accumulated Losses iii. Book Value of Intangible Assets iv. Deferred Revenue Expenditure Net-worth as on ________ ( Authorised signatory) 5 Auditor’s certificate of Net worth of PSP (To be submitted by the PSP within six months of end of a financial year ) 1.With reference to Regulation 6 of the IFSCA (Payment Services) Regulations, 2024 (“the regulations”), we have perused the records maintained by _________ (Name of PSP). On the basis of our perusal of the records, the audited/unaudited (strike off whichever is not applicable) financial statements for the financial year ended _______ and the information and explanations given to us, we certify that the (Name of PSP)’s net-worth computed in accordance with the paragraph 3 of schedule V of the regulations as on ________ is (currency) _______. 2.This certificate has been provided by us at the request of the Company 3. The details for net-worth computation are given below: Computation of net-worth of __________ as on _________ Particulars Amount Equity Share Capital Add : v. Preference shares compulsorily convertible into Equity capital vi. Free Reserves vii. Share Premium Account viii. Capital Reserves (representing surplus arising out of sale proceeds of assets) Less : v. Revaluation Reserves vi. Accumulated Losses vii. Book Value of Intangible Assets viii. Deferred Revenue Expenditure Net-worth as on ________ (Signature of Auditor with seal ) 6 Auditor’s Certificate on Maintenance of Balance in Escrow Account/s (To be submitted by the PSP within 15 days of end of a quarter ) (Name of PSP : ) For the Period ( Start Date ) to ( End Date ) No. Information item Details 1. Escrow bank account/s : i.Name of the Bank ii.Branch Address iii. Account No. 2. Outstanding Liability (i.e. value of outstanding e-money in wallets issued by the PSP and payments due to merchants) of the entity at the beginning of the quarter 3. Debits to Escrow account(s) during the Quarter : a. Payments to merchants / payment service providers towards reimbursement of claims received from them. b. Payment to nodal bank ( IBU or IBC) for processing funds transfer instructions of the payment service user c. Payments made to nodal bank towards settlement obligations from participation in payment systems d. Payment towards applicable taxes e. Refunds towards cancellation of transactions resulting in erroneous loading / reloading of transactions f. Funds transferred to other escrow account (if any) g. Any other payment due to the PSP as per terms of contract entered into with the Payment Service User (e.g. service charges, 7 forfeited amount, commissions, etc.). h. Any other debit as directed by the regulator 4. Credits to Escrow account(s) during the Quarter : a. Payments received towards issue, load / reload of wallets, including through agents b. Refunds received for failed / disputed / returned / cancelled transactions c. Payments received from nodal bank towards settlement obligations from participation in payment systems . d. Funds received from other escrow account. 5. Balance in the Escrow bank account(s) balance at the end of the Quarter 6. (i) Whether the escrow account(s) had sufficient balance to cover the outstanding liability of the entity,