Electronic Payment System

Electronic Payment System

    EPS has been divided under two categories-

—  1) Centralized payment system(cps)-

A)   NEFT   b) RTGS   c) National Electronic Clearing Services (NECS).

—  2)Decentralized payment system –  

A)   MICR b) ECS  c) Regional Electric Clearing Service (REGS)

          NEFT

—  RBI operationalised NEFT system in Nov 2005.

—  Fund transferable among any bank.

—  No upper and lower limits.

—  The remitter and beneficiary should have bank A/C.

—  Foreign remittances are not permitted.

—  Opening hour: 8am to 7pm (wef 17 July 2017). - 23 half hourly settlement under payment and settlement system act 2007.

—  Charges-

—     Up to 10 k        – Rs 2.5

—     10k to 1 lac      – Rs 05

—      1 lac to 2lac    –  Rs 15

—      2lac and >       – Rs 25 

—  Computerization of banks started by the report of Rangarajan committee in the year 1984(1^st phase) and 1989 (2^nd phase).

—   

RTGS

—  It implemented on 26/03/2004.

—  It is a centralized payment system operated by RBI.

—  It uses Indian financial network (INFINET) and SFMS (structural financial messaging system) platform.

—  RTGS operation regulated under RTGS system regulations, 2013.

—  Min transferable amount – 2 lakh

—  Max transferable amount – no limit.

Charges-

—  2 lakh to 5 lakh         – Rs 5

—  5 lakh and above       –Rs 50

Immediate payment services

—  Launched in 22 nd Nov 2010.

—  Under recommendation of Shyamla Gopinath.

—  Per day limit- 2 lakh

—  Through Atm, Mobile or Internet fund transfer possible.

—  Instant money gets transferred through bank to bank a/c of customer. Services work 24x7.

—  Charges up to 1 lakh –Rs 5

UPI (unified payment interface)

—  Launched on – 11 April 2016

—  Launched by – Dr Raghuram Govind Rajan.

—  Transaction charges – nil

—  Fund transfer limit – 1 lakh/transaction

BHIM

—  Bharat interface for money.

—  It works through UPI.

—  Bill payment limit – 20000/transaction

Structured financial messaging system (SFMS)

—  SFMS is an electronic data interchange (EDI) system like SWIFT that permits exchange of structured messages (prepared as per published standard of working group of INFINET.)

Mobile banking

—  RBI issued guidelines on Oct 08, 2008. For banks u/s 18 of the payment and settlement system act 2007.

—  Transaction limit – (Rs 50000/daily previously) now it is as per bank discretion.

—  Bank can changes limit according to customers risk profile.

NPCI

—  It is an umbrella org for all retail payment systems in India which was setup under guidance and support of RBI and iba.

—  Incorporated dec 2008.sec 8, under company’s act 2013.

—  Authorized capital 300cr .paid up capital – 100cr.

—  Make atm deployment economical and viable to members so NPCI taken over operation during dec 2009.

Nach

—  National automated clearing house

—  NPCI implemented NACH for banks FI, corporate, Govt as a web based solution to facilitate interbank, high volume electronic transactions etc.

—  It is used for making bulk transactions towards distribution of subsidies, dividends interest, salary pension etc. Collection of payments telephone electricity, water loans, investment in mf, insurance premium etc.

—  Nach adhar payment bridge (APB) system dev by NPCI bulk subsidy distribution.

SWIFT

—  Society for worldwide interbank financial telecommunication.

—  SWIFT was founded in 1973

—  It is owned by member banks.

—  It does not facilitate fund transfer. It sends payment order.

—  It is basically a message transmission system taking place worldwide.

—  209 countries are member of SWIFT.

Bharat bill payment system

—  Based on the recommendation of GIRO advisory group.

—  RBI issued guidelines in 28 Nov 2014.

—  Providing convenience of anytime anywhere bill payment to customers under payment and settlement system act 2007.

Clearing corporation of India  (CCIL).

—  It was introduced – 30/04/2001.

—  It is countries first clearing house for govt securities, Forex and other related market segments.

—  Promoters and management owned by market participants and promoted by banks.

—  It was established with automated capital of Rs 50 cr.

—  Membership of CBLO (collateralize borrowing and lending obligation) segment is extended to Banks, Financial institutions, Insurance companies, MF, PD, NBFC, and Corporate etc through Indian financial network (INFINET).