NTA UGC NET - Commerce: UNIT 07: Banking and Financial Institutions PART 04

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NTA UGC NET - Commerce

UNIT 07

Banking and Financial Institutions

PART 04

 

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Digital Payment Systems
 

The Payment and Settlement Act, 2007 has defined Digital Payments, as any "electronic funds transfer"
 

 

The payment systems

 
1. Instruments which are covered under Systemically Important Financial Market Infrastructure (SIFMIs),
2. Retail Payments.
 

 

Systemically Important Financial Market Infrastructure (SI-FMI)
 

System used for the purposes of clearing, settling, or recording payments, securities, derivatives, or other financial transactions.
 

Four instruments of payments:
 

1. RTGS: (Real Time Gross Settlement ) This system is primarily meant for large value transactions
 

2. CBLO: Collateralized Borrowing and Lending Obligation (CBLO) is a money market instrument developed by Clearing Corporation of India Ltd. (CCIL), introduced in 2003
 

3. Government Securities: A Government Security (G-Sec) is a tradeable instrument issued by the Central Government or the State Governments.
 

4. Forex Clearing: The term ‘Forex’ stands for Foreign Exchange. In simple terms it is the trading in currencies from different countries against each other
 

 

Retail Payments
 

1. Cheque Truncation System (CTS): online image-based cheque clearing system
 

2. Non-MICR: The Non-MICR clearing refers to the process of manual clearing of cheques
 

3. NEFT: National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer
 

4. IMPS: Immediate Payment Service (IMPS) offers an instant 24X7 interbank electronic fund transfer service through mobile phones.
 

5. UPI: Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
 

6. NACH: “National Automated Clearing House (NACH)” is a service offered by NPCI
 

7. Debit/Credit card
 

8. Bharat Bill Payment System (BBPS): Bharat Bill Payment System is a tiered structure for operating a unified bill payment system

9. Bharat Interface for Money (BHIM): Bharat Interface for Money is a mobile application that enables simple, easy and quick payment transactions using Unified Payments Interface (UPI).

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