Section 119

commence to operate any electronic fund transfer system; or

where such person has been operating any electronic fund transfer system immediately before the effective date, continue to operate such system for a period exceeding ninety days after the effective date, or such further period as the Bank may specify, unless he has submitted for the approval of the Bank the scheme of operations of the system, and the rules, contract, by-laws or other documents relating to the rights, duties and liabilities of the persons participating in the system, and obtained the authorisation in writing of the Bank to operate the system.

Before making any decision under subsection (1), the Bank may require the person seeking authorisation to submit to the Bank such other information and particulars relating to the system or to the person seeking the authorisation, or to the persons who are or will be participating in the system, as the Bank may specify, and may also make such inspection of the premises, equipment, machineries, books or other documents, or accounts and transactions, relating to the system, as the Bank may consider desirable.

The Bank may approve or reject a scheme submitted under subsection (1) and the rules, contract, by-laws or other documents relating thereto and submitted therewith, or may approve the same subject to such modifications and alterations to the scheme, or to any or all of the documents as aforesaid submitted therewith, as it may deem necessary, desirable or expedient, and may in giving any authorisation under this section, impose such restrictions, limitations, or conditions as it may deem fit.

Notwithstanding anything contained in any authorisation given, or in any scheme or document approved, under subsection (3), any person authorised under that subsection shall comply with any regulations made under section 116 relating to electronic fund transfers, and where there is any conflict or inconsistency between the terms of such authorisation or anything in such scheme or in any such document and such regulations, the provisions of the regulations shall prevail and have full force and effect.

While an authorisation under subsection (3) is in force, the Bank may, from time to time, inspect the premises, equipment, machineries, books or other documents, accounts or transactions relating to the system.

The Bank may at any time, after giving the person authorised under subsection (3) a reasonable opportunity to make representations, revoke or suspend, or amend anything contained in, an authorisation granted under that subsection.

In making any revocation under subsection (6), the Bank may include requirements of a consequential, ancillary or incidental nature to be complied with by the person whose authorisation is being revoked or by any person participating in the system, and in making any suspension under that subsection, the Bank may impose such terms, conditions and requirements as it deems necessary or expedient.

Any person whose authorisation is revoked or suspended under subsection (6) shall immediately thereupon cease to operate the electronic fund transfer system in respect of which the authorisation was revoked or suspended.

Where the person authorised under subsection (3) is a licensed institution, or a scheduled institution, or a non-scheduled institution in respect of which the Minister has made an order under section 93(1), nothing contained in this section shall in any manner or to any extent derogate from the powers of the Bank, or the liabilities and obligations of the institution, under any other provision of this Act in relation to its activities under such authorisation or otherwise howsoever.