While significant differences remain after this two-stage process, the organization has identified a likely issue of systemic wage discrimination so that it can take corrective action before initiating a legal challenge. A secure and well-functioning payments ecosystem is essential to support economic activity. Technological innovations are transforming the financial system, and payments remain the main sector affected by these innovations. While the first effects have been seen in high-value payment systems, policymakers and industry have made efforts in recent years to revolutionize the retail payments sector, which allows households and businesses to make and receive payments. These efforts reflect the growing adoption and role of digital payments, which have also been bolstered by the Covid-19 pandemic. Many states, cities and other political divisions have passed laws prohibiting discrimination in employment based on various protected categories. State courts generally adopt the interpretation of Title VII by federal courts, although others have passed more protected laws. A growing trend in state laws prohibits asking for a candidate`s salary history, fearing that the practice could perpetuate a gender pay gap if employers base a new employee`s salary on their previous salary. Employers should consult legal counsel for advice on pay equity laws in their state. This regulation stipulated that any such company that was to become a payment system had to obtain mandatory authorization from the RBI. There were exceptions for certain types of payment systems, as they settle their accounts using a node account and are not involved in settling transactions between a customer and businessmen.
LawSikho has created a telegram group for the exchange of legal knowledge, recommendations and various possibilities. You can click on this link and register: The Payments and Regulations Act has been promulgated in accordance with this intermediate regulation. The Act deals with the designation of the RBI as the authority responsible for regulating payment and settlement systems; Requires RBI approval to operate a payment system; Ensures the regulation and oversight of payment systems to the RBI by setting standards and requesting information, regular reports, documents, etc.; Ensures that the RBI audits on-site payment systems and conducts on-site and off-site inspections; Authorizes the RBI to issue guidelines; and provides that the set-off and settlement are final and irrevocable. With the growing popularity of electronic payments, there is an urgent need to implement electronic payment policies, as many people find loopholes and use these forms of payment for fraud, etc. The Reserve Bank of India (RBI) has issued new guidelines as part of the „Vision Statement on Payment and Settlements Systems in India 2019-21”, the main objective of which was to create much stricter and more up-to-date guidelines to match the development of these electronic payment systems. As part of this goal, a discussion paper was released by the Reserve Bank of India (RBI) asking the public for suggestions on how the guidelines should be worded to reflect day-to-day developments. Scope – Pay equity includes issues related to the equity of compensation paid by employers to individuals or groups of employees. To effectively recruit and retain employees, an organization must have internal equity that employees believe will be fairly rewarded based on performance, skills and other job requirements.
Organizations must also ensure equity in external compensation with employers competing for talent in the same workforce. Understanding the legal obligations related to pay equity allows HR professionals to assess the legality of their organization`s compensation practices and determine what corrective action is needed. In India, the PSS Act is the most important legislation for payments. The PSS Act was enacted primarily to regulate systemically important payment systems and designated the Reserve Bank of India (RBI) as the regulator of payment systems. Because of this initial scope, the PSS focuses on regulation from a systemic perspective and gives the RBI regulatory powers without establishing corresponding obligations on critical issues for payment system operators. In order to address these gaps, the RBI relied on its authority to issue instructions under the Payment Systems Regulation Act of the PSS. Since its enactment, the RBI has issued approximately 280 circulars and notifications under the PSS. This has led to a situation where the entire regulatory framework of payment systems in India has evolved through subordinate laws without specific guidelines in primary law. For example, the entire legal framework for e-wallets and payment aggregators (which are subject to authorisation under the PSS), the substantive provisions for the operation of these payment services, obligations relating to risk management, consumer protection, interoperability, etc. result from subordinate legislation. Pay equity raises serious legal questions for organizations and HR professionals.
This article discusses a number of laws related to pay discrimination: The Digital Payments Index, launched by the Reserve Bank of India („RBI”), shows the rapid adoption and deepening of digital payments across the country in recent years. While India continues to have a „strong preference for cash payments,” studies show that there is a growing propensity to adopt digital payments. Given the value proposition of digital payments and the evolution of consumers towards these payments, it is important to reassess the key enablers for creating an ecosystem conducive to the continued adoption and sustainable use of digital payments by end users. One of these key factors is an enabling legal and regulatory framework. In India, the Payment and Settlement Systems Act, 2007 („PSS Act”) (i.e. the main Digital Payments Act) was enacted more than a decade ago, when the digital payments market in India was in its infancy. The Act was enacted primarily to regulate payment systems from a systemic perspective and to give the RBI the necessary powers to regulate such systems. As a result, the PSS does not take into account the policy objectives and legal provisions that are essential to the growth of a retail payments industry. Although the RBI has repeatedly attempted to fill existing gaps in primary law with instructions issued from time to time, this may not be the optimal regulatory or policy response.
Such an approach is also not in line with international best practices, where several countries, alongside policy interventions, have made efforts to modernize their payments laws to adapt to the rapid evolution of the sector. Each company`s Human Resources Information System (HRIS) is different. And neither organization`s HRIS systems handle exactly the same information. Nevertheless, HR professionals can start with a general list and gather as much information as possible in electronic form. Collecting data from paper files may be too time-consuming to be productive, at least initially. In any event, the Ledbetter Act creates record-keeping and record-keeping problems for salary decisions and perhaps for a host of other decisions. Therefore, as part of a voluntary compensation self-audit, HR professionals should carefully consider these issues and make the necessary recommendations to change organizational practices. Existing legal requirements regarding the retention period of records may no longer provide employers with sufficient protection against future claims.
Unfortunately, there is no clear line for new standards for record keeping. Each organization must make its own decisions about what to keep and for how long, and HR professionals must engage in an ambiguous cost-benefit analysis. The legal framework for digital payments under the PSS needs to be rethought so that it can adapt to new payment products and services and take into account the changing nature of the payments industry. The approaches and recommendations proposed in this report to overhaul India`s Payment Services Act are guided by three main policy objectives that underpin most modern payments laws: (1) ensuring the security and soundness of payment systems, (2) promoting the efficient operation of payment systems; and (3) protection of consumer interests. In order to achieve an appropriate balance between those objectives, the report shall be based on the following principles: (a) the level of regulatory oversight should be proportionate to the risk posed by a payment activity; (b) ensuring legal certainty for businesses and consumers by defining the broad lines and mandate of the main law; and (c) provide the RBI with flexibility in designing subordinate regulations, taking into account the changing payments landscape. Possible approaches to the design of the legislative proposal are set out below. An e-wallet is defined as the store of value on a card that, similar to cash, can be used to pay for travel or other small transactions. The electronic „wallet” is a secure piece of information stored in a special area or in the smart card according to World Bank reports. This type of electronic payment has two main purposes, namely to replace cash payment systems and to have a single basic tariff type. Different types of e-wallets are tokens, transport money, micro-purchases, etc. This article was written by Chandana Pradeep of the School of Law, University of Petroleum and Energy Studies, Dehradun. This article analyzes the types of electronic payment systems as well as the laws related to the regulation of electronic payment systems in India.