Supervision and Oversight in the National Payment System
The main purpose of supervision and oversight in the National Payment System (NPS) is to ensure the stability and development of the NPS (Article 31, Part 1 of the Federal Law No.
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Supervision by the Bank of Russia involves ensuring compliance with Russian legislation on the NPS and Bank of Russia regulations adopted in accordance with it by the following NPS entities:
funds transfer operators that are credit institutions or foreign bank branches;
payment system operators;
foreign payment system operators;
payment infrastructure service operators;
electronic platform operators;
payment acceptance operators.
Supervision in the National Payment System is exercised on a permanent basis and involves:
Off-site supervision
The Bank of Russia analyses documents and information, including reporting data, about the above NPS entities’ activities.
Inspections and controls
The Bank of Russia carries out inspections where the above NPS entities perform their activities.
Controls involve a Bank of Russia representative receiving payment services provided by funds transfer operators and electronic platform operators (‘test purchases’).
Measures
The Bank of Russia performs activities and applies measures, which include demanding rectification of breaches, may also impose fines and restrictions on the provision of payment services and payment infrastructure services when Russian legislation on the NPS is violated.
The Bank of Russia may impose administrative liability on payment system operators, payment infrastructure service operators, electronic platform operators, payment acceptance operators and their officials when administrative violations are identified.
(Articles 31 and 35 of Law on the NPS)
The Bank of Russia’s activities aimed at ensuring that NPS entities (organisations of payment market) enhance their operations and services as well as at developing overseen entities based on the regulator’s recommendations. The above overseen entities include payment systems, the payment infrastructure, and the digital ruble platform.
The Bank of Russia regularly discloses information about NPS oversight results in its reviews.
Oversight in the National Payment System is carried out on a permanent basis and involves:
Monitoring in the National Payment System
Monitoring is the Bank of Russia’s activity that includes collecting, systematising and analysing information about the NPS entities’ activities and/or functioning of overseen entities.
Assessment in the National Payment System
The Bank of Russia assesses compliance of the NPS entities and related overseen entities (payment systems and the payment infrastructure) with the Bank of Russia recommendations. These recommendations may include the Bank of Russia’s own recommendations as well as recommendations on using standards or the best global and domestic practices (provided that Bank of Russia publications contain Russian versions of the relevant documents).
Initiating changes in the National Payment System
After the assessment, the Bank of Russia together with the NPS entities develop measures for proposed changes to the NPS entities’ activities and/or the functioning of overseen entities.