Payment and Settlement Systems in India#
Payment and Settlement Systems Act, 2007#
The Act provides for regulation and supervision of payment systems in India.
Types of Payment Systems#
| System | Description | Regulator |
|---|---|---|
| Large Value | RTGS, NEFT | RBI |
| Retail | UPI, IMPS, Cards | RBI |
| Prepaid | Wallets, PPI | RBI |
| Cross-border | SWIFT | RBI |
Key Payment System Operators#
- NPCI: National Payments Corporation of India
- Banks: SDLMs, WLAOs
- Card Networks: Visa, Mastercard, RuPay
- Wallets: Paytm, PhonePe, Google Pay
Settlement Mechanisms#
1. Gross Settlement
- RTGS: Real Time Gross Settlement
- Immediate settlement
- Large value transactions
2. Net Settlement
- Bulk payments
- Retail transactions
- Deferred net settlement
RBI Regulations#
- Payment system operators registration
- Security standards
- Grievance redressal
- Interoperability requirements
- Data localization
Recent RBI Directions#
- Mandatory acceptance of UPI
- Interoperability for prepaid instruments
- Payment security safeguards
- Customer protection measures