Section 3. The Explanation 2 ins. by s. 3, ibid . (w.e.f. 1-6-2015)

3. The Explanation 2 ins. by s. 3, ibid . (w.e.f. 1-6-2015). 4. Ins. by Act 18 of 2015, s. 4 (w.e.f. 1-6-2015). provisional or otherwise, shall not utilise the said balances for any other purposes until all such persons are paid in full or adequate provision is made therefor. Explanation . — For the purposes of this section, the expressions — (a) "designated payment system" shall mean a payment system or a class of payment system, as may be specified by the Reserve Bank from time to time, engaged in collection of funds from their customers for rendering payment service; (b) "scheduled commercial bank" shall mean a "banking company"," corresponding new bank", "State Bank of India" and "subsidiary bank" as defined in section 5 of the Banking Regulation Act, 1949 (10 of 1949) and included in the Second Schedule to the Reserve Bank of India Act,1934 (2 of 1934).] 3. Designated authority and its Committee.— (1) The Reserve Bank shall be the designated authority for the regulation and supervision of payment systems under this Act. (2) The Reserve Bank may, for the purposes of exercising the powers and performing the functions and discharging the duties conferred on it by or under this Act, by regulation, constitute a committee of its Central Board to be known as the Board for Regulation and Supervision of Payment and Settlement Systems. (3) The Board constituted under sub-section (2) shall consist of the following members, namely: — (a) Governor, Reserve Bank, who shall be the Chairperson of the Board; (b) Deputy Governors, Reserve Bank, out of whom the Deputy Governor who is in-charge of the Payment and Settlement Systems, shall be the Vice-Chairperson of the Board; - (c) Not exceeding three Directors from the Central Board of the Reserve Bank of India to be nominated by the - Governor, Reserve Bank. (4) The powers and functions of the Board constituted under sub-section (2), the time and venue of its meetings, the procedure to be followed in such meetings, (including the quorum at such meetings) and other matters incidental thereto shall be such as may be prescribed. (5) The Board for Regulation and Supervision of Payment and Settlement Systems constituted under clause (i) of subsection (2) of section 58 of the Reserve Bank of India Act, 1934 (2 of 1934) shall be deemed to be the Board constituted under this section and continue accordingly until the Board is reconstituted in accordance with the provisions of this Act and shall be governed by the rules and regulations made under the Reserve Bank of India Act, 1934 in so far as they are not inconsistent with the provisions of this Act."