law: Payment and Settlement Systems Act, 2007
  Chapter III:
  
  Authorisation of Payment Systems
  4. Payment system not
  
  to operate without authorisation .-
  1.  
  
    No
  
  person, other than the Reserve Bank, shall commence or operate a payment system
  
  except under and in accordance with an authorisation issued by the Reserve Bank
  
  under the provisions of this Act: Provided that nothing contained in this
  
  section shall apply to-
  a.   the continued
  
  operation of an existing payment system on commencement of this Act for a
  
  period not exceeding six months from such commencement, unless within such
  
  period, the operator of such payment system obtains an authorisation under this
  
  Act or the application for authorisation made under section 7 of this Act is
  
  refused by the Reserve Bank;
  b.   any person acting as
  
  the duly appointed agent of another person to whom the payment is due;
  c.   a company accepting
  
  payments either from its holding company or any of its subsidiary companies or
  
  from any other company which is also a subsidiary of the same holding company;
  d.   any other person whom
  
  the Reserve Bank may, after considering the interests of monetary policy or
  
  efficient operation of payment systems, the size of any payment system or for
  
  any other reason, by notification, exempt from the provisions of this section.
  2.  
  
    The
  
  Reserve Bank may, under sub-section (1) of this section, authorise a company or
  
  corporation to operate or regulate the existing clearing houses or new clearing
  
  houses of banks in order to have a common retail clearing house system for the
  
  banks throughout the country:
  Provided, however,
  
  that not less than fifty-one per cent. of the equity of such company or
  
  corporation shall be held by public sector banks.
  Explanation.- For the
  
  purposes of this clause, "public sector banks" shall include a
  
  ''corresponding new bank", ''State Bank of India'' and ''subsidiary bank''
  
  as defined in section 5 of the Banking Regulation Act, 1949.