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Payments and Settlement Systems in India


India has multiple payments and settlement systems. RBI Still continues to evolve new payment methods and slowly revamping the payments and settlement capability in India.

India supports a variety of electronic payments and settlement system, both Gross as well as Net settlement systems.

The Gross systems is -
  • Real Time Gross Settlement (RTGS)
The Net settlement systems are;
  • ECS - Credit
  • ECS - Debit
  • Credit cards and Debit cards
  • National Electronic Funds Transfer (NEFT)
  • Immediate Payment Service 

 

Electronic Clearing Service (ECS Credit)

Known as “Credit-push” facility or one-to-many facility this method is used mainly for large-value or bulk payments where the receiver’s account is credited with the payment from the institution making the payment. Such payments are made on a timely-basis like a year, half a year, etc. and used to pay salaries, dividends or commissions. Over time it has become one of the most convenient methods of making large payments.

 

Electronic Clearing Services (ECS Debit)

Known as many-to-one or “debit-pull” facility this method is used mainly for small value payments from consumers/ individuals to big organizations or companies. It eliminates the need for paper and instead makes the payment through banks/corporates or government departments. It facilitates individual payments like telephone bills, electricity bills, online and card payments and insurance payments. Though easy this method lacks popularity because of lack of consumer awareness.