(1) Any applicant for an authorisation whose application for the operation of the payment system is refused under sub-section (3) of section 7 or a system provider who is aggrieved by an order of revocation under section 8 may, within thirty days from the date on which the order is communicated to him, appeal to the Central Government.
(2) The Central Government shall endeavour to dispose of an appeal under sub-section (1) within a period of three months.
(3) The decision of the Central Government on the appeal under sub-section (1) shall be final.
Simplified Explanation
Section 9 of the Payment and Settlement Systems Act, 2007 outlines the process for appealing to the Central Government in cases where an applicant’s authorization is refused or where a system provider is aggrieved by the revocation of their authorization. Here’s a detailed breakdown:
Key Provisions of Section 9:
1. Right to Appeal (Subsection 1):
- Applicants Refused Authorization: If an applicant’s request for authorization to operate a payment system is refused under Section 7(3) (the provision that requires the Reserve Bank to notify reasons for refusal and give the applicant a chance to be heard), the applicant has the right to appeal to the Central Government.
- System Providers Aggrieved by Revocation: Similarly, a system provider whose authorization is revoked under Section 8 (for failure to comply with the Act or regulations, or any other specified reason) can also appeal the decision to the Central Government.
- Time Frame: The appeal must be made within thirty days from the date the decision (refusal or revocation) is communicated to the aggrieved party.
2. Time Frame for Disposal of Appeal (Subsection 2):
- The Central Government is required to endeavor (make an effort) to dispose of the appeal within three months from the date of the appeal’s receipt.
- This ensures that the appeal process is handled in a timely manner, promoting fairness and efficiency in resolving disputes.
3. Finality of the Central Government’s Decision (Subsection 3):
- Once the Central Government makes a decision on the appeal, the decision is final.
- This means there is no further legal recourse or appeal process available after the Central Government’s decision, ensuring that the process is conclusive.
Summary:
Section 9 provides a clear procedure for appealing to the Central Government when:
- An application for authorization is refused by the Reserve Bank under Section 7, or
- A system provider’s authorization is revoked under Section 8.
Key details include:
- An appeal must be made within 30 days of receiving the refusal or revocation notice.
- The Central Government is expected to dispose of the appeal within three months.
- The Central Government’s decision on the appeal is final and cannot be further challenged.
This section ensures that there is an avenue for recourse if an applicant or system provider feels that a decision made by the Reserve Bank was unfair or unjust, providing a layer of oversight by the Central Government. However, once the Central Government makes a final decision, the matter is considered concluded.
