Page 116 - DMGT303_BANKING_AND_INSURANCE

Unit 5: Payment and Settlement System

14. Operationalising NEFT and ECS / NECS in Bhutan. Examining the feasibility of extending Notes
NFS to cover banks operating in Bhutan.
15. Examining inter-bank funds transfer using CFMS.

16. Implementing grid-based clearing.
17. Strengthening and standardising security features on cheques to enable straight- through-
processing.

During the year July 2011-June 2012

1. Extending electronic payment products to cover all branches of banks, including RRBs.

2. Facilitating government transactions through RTGS / NEFT for RBI-based payments /
receipts.
3. Enabling NECS coverage to all core-banking branches in the country. NECS (Debit)
operationalisation to be separately pursued.
4. Exploring implementation of RECS (Debit) in a few locations.
5. Migrating all cheques in the country to the new MICR standards.

6. Encouraging NPCI to start India Card, PoS Switch and Mobile Payments Settlement
Network.

Abbreviations used in the Document

ATM Automated Teller Machines

BCs Business Correspondents
BIS Bank for International Settlements
BPSS Board for Regulation and Supervision of Payment and Settlement Systems
CCIL Clearing Corporation of India Limited

CCPs Cheque Collection Policies
CenECS Centralised ECS
CFMS Centralised Funds Management System
CPCs Cheque Processing Centres

CPSS Committee on Payment and Settlement Systems
CTS Cheque Truncation System
ECS Electronic Clearing Service
FATF Financial Action Task Force

IFSC Indian Financial System Code
IRDA Insurance Regulatory and Development Authority
MICR Magnetic Ink Character Recognition
MMBCS Magnetic Media Based Clearing System

NECS National Electronic Clearing Service

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