Page 109 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes V. Other Initiatives

5.1 The Bank shall continue its initiatives towards information dissemination, policy and
product outreach, co-ordination with other regulators/international/regional bodies, both
within the country (SEBI, IRDA, etc.) and abroad (central banks, CPSS, SAARC Payments
Council, etc.).

5.2 The Bank will contribute to international oversight and co-operation initiatives as a
member of the CPSS, the SAARC Payments Council and such other similar bodies. The
Bank shall also encourage and support partnership programs with neighbouring countries
and regional institutions for reforms in payment systems in the region.

5.3 The Bank shall publish the Red Book on Payment Systems for India in collaboration with
CPSS-BIS.
5.4 The First Report on Oversight of Payment Systems in India was released during the year
2007. The Second Report on Oversight of Payment Systems in India will be brought out.
5.5 A Review of Categorisation of Systemically Important Payment Systems (SIPS) and System-
Wide Important Payment Systems (SWIPS) was carried out during 2002. A Review of SIPS
and categorisation of SIPS was also carried out by the Committee on Financial Sector
Assessment as part of the Financial Sector Assessment Program during 2008-09. It shall be
the endeavour to repeat this exercise and bring out a Review of Large-Value Payment
Systems in the country as well.
5.6 The various initiatives undertaken would have to be reviewed periodically to ascertain
their impact on smooth functioning, taking corrective measures, if required, etc. For the
purpose, the following studies are planned to be undertaken –

Impact of rationalisation of charges on the use of various payment systems.
Growth in use of prepaid payment instruments consequent upon issuance of
guidelines and authorisation of various entities to issue such instruments.
Bank-group-wise usage of Intra-Day Liquidity for smooth settlement of RTGS
transactions.

Impact of closure of High Value Clearing on MICR Clearing and migration of large-
value transactions to electronic mode (RTGS / NEFT).

Increased usage of cards for making payments and corresponding decline in use of
cash for retail transactions.
5.7 As part of the Information System Policy framework, the pre-requisites of a policy for
preservation and storage of data/information generated and maintained both in respect
of the paper and electronic clearing modes is being finalised in consultation with the
Bank’s Legal Department. This is expected to ensure uniform practices at various clearing
locations in terms of preservation of records and availability thereof.
VI. Action Plan

6.1 With the above agenda in mind, the following action points have been targeted to be
achieved in the next one-to-three years’ time. The Bank’s response would be proactive and
to dovetail its initiatives depending on cooperation and support from various stakeholders,
expectations of the system, capabilities and preparedness of participants, and developments
from time to time.

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