Are you willing to know the detailed information about the Payment and settlement systems Act, 2007? Here is the Article which provides you the clean and clear information about the Payment and settlement systems Act, 2007. This Act was introduced by the RBI, to provide the regulations and supervision of Payment Systems in India. And also it designates the apex institutions of RBI as an authority for all the purposes and all the related matters.
What is meant by Payment and Settlement Systems?
It is known as the aggregate of all the Payment instructions for all common rules, procedures and supportive technical and Programm facilities for the implementation of clearing and transfer of funds and also the execution of final settlement. which is provided payment for its beneficiary.
Here the RBI has authorized under the Act to constitute a committee for its central board, which is known as the Board for Regulation and Supervision of Payment and Settlement system. This act is also known for providing the legal basis for "netting" and "settlement finality".
Payment System:-
It is a Payment system which is effected between a prayer and a beneficiary, involving clearing and also payment (or) settlement service (or) all of them, but it does not exceed (or) include in the stock exchange. It includes the systems enabling credit cards operations, debit card operations, smart card operations, money transfer operations (oR) similar operations.
All the entities which operating those systems will be known as System Providers. Also, all the entities which are operating money transfer systems (or) card payment systems (or) similar systems fall within the preview of a system provider.
Settlement:-
It means that the settlement of payment instructions who have received and these includes settlement of securities, foreign exchange (or) derivatives (or) other transactions. It can take place either (or) on a net basis (or) on a gross basis.
Payment Instruction:-
It is defined as an Instrument, which is authorized (or0 order in any form, it includes by electronic means, to effect a payment by a person to the participant in a payment system (or) in the form of one participant in such a system to another participant in that system.
Payment Obligation:-
It is defined as which is owned by one participant in a payment system to another such participant, which results from clearing or settlement or payment instructions relating to funds, securities or foreign exchange or derivatives or other transactions.
