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Banking and Insurance
Notes NEFT National Electronic Funds Transfer
NFS National Financial Switch
NPCI National Payments Corporation of India
RECS Regional ECS
RTGS Real Time Gross Settlement
Self Assessment
Fill in the blanks:
11. While launching of Real-Time Gross settlement (RTGS) system by ............. has added a
new dimension to EFT scenario.
12. The RBI, apart from the role of regulator and supervisor of payment systems, also plays
the role of a Settlement Bank apart from being a ............., an operator and a user.
13. The ............. for regulation and supervision of Payment and Settlement Systems (BPSS) is a
subcommittee of the Central Board of the RBI and is the highest policy making body on
payment system.
14. During the mid ............., electronic payment systems like ECS and EFT were introduced.
15. It is here that the need for a ............. Truncation mechanism arises.
16. Cheque ............. is a system of cheque clearing and settlement between banks based on
electronic data/images or both, without physical exchange of instrument.
Notes The more frequently affirm must refinance debt, the greater is the risk of its not
being able to obtain the necessary financing.
Task Discuss the latest vision document for payment system.
Case Study HSBC
HSBC was a founder member of the Faster Payments Service. Rather than regarding it as
a compliance issue, the bank embraced the real-time technology as a way of introducing
new and improved services to their customers and unlocking new revenue opportunities.
The challenge
This project provided a significant challenge for the industry and for some it has acted as
a catalyst to modernise business processes and back-office procedures in order to support
the real-time model. For others, like HSBC, where this process was already underway, it
provided the opportunity to complement their existing technology and investment with
an advanced payment mechanism.
Contd....
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