15-Dec-151 PAYMENT & SETTLEMENT SYSTEMS … Presentation by S.R.Ramananda, Consultant – IT Solutions

25-Dec-152 OBJECTIVE To know the mechanism of Payment & Settlement Systems To know various methods of Payment & Settlement Systems in use. To know about safe, secure, sound, Speed payment systems

35-Dec-153 What is Payment System Transfer of value between debtor and beneficiary Settlement of payment obligation between seller and buyer in exchange of goods or services. Payment system is two way flow of payment and exchange of goods.

4 Who Will Use Payment System Individuals, Banks Companies Government Any one who wants to make payments to discharge his obligations 5-Dec-154

5 5 Types of Payment Cash Cheque DD PO TT Electronic Physical ATM Card ECS Internet Tele banking Credit Card Debit Card RTGS EFT / NEFT

65-Dec-156 Traditional Methods of Payment Cheque clearing within and out side the place Clearing operations / Clearing houses More than 1000 clg houses managed by RBI,SBI,PSBs Works under rules & regulations prescribed by RBI High value clearing 3-10 days for out station cheque collection Charges for collection MICR & Non MICR Clg

75-Dec-157 Role of RBI In Payment & Settlement Systems As Settlement Bank as well as user Introduced MICR In late 80s. Introduced EFT/ECS in Mid 90s Introduced RTGS in 2004 Up gradation, Refining, Increase Efficiency in existing systems Advancement of Technology Formed Board for Payment & Settlement Authorise,form policies, set standards for existing and future Payment Systems Allot membership to Banks

8 Payment systems abroad CHIPS –Clearing House Inter-bank Payment System, a major payment system in the USA. FEDWIRE – another payment system operated by Federal Reserve Bank, USA. CHAPS – Clearing House Automated Payment System, equivalent to CHIPS in LONDON.

9 Payment Systems Abroad TARGET – Trans-European Automated Real-Time Gross Settlement Express Transfer System – an Euro payment system RTGS-plus and EBA – These are Euro clearing systems, with RTGS+, being a German hybrid clearing system and operating as an European oriented RTGS. EBA-EURO 1- focus on cross border Euro payments. -STEP 1 is another system of EBA for settling Retail Payments. STEP 2 is also in use, which facilitates Straight through processing (STP) to member banks, using industry standards.

105-Dec-1510 Thanks you Any Questions Please