Page 93 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance Rupesh Roshan Singh, Lovely Professional University

Notes Unit 5: Payment and Settlement System

CONTENTS
Objectives
Introduction

5.1 Payment and Settlement Systems in Banks
5.2 Role of Credit/Debit Cards in Payment Systems
5.3 Credit Card Operations

5.4 Customer Rights
5.5 Core Banking Solutions or Centralised Banking Solutions (CBS)
5.5.1 Cheque Truncation
5.6 Role of RBI in Payment Systems
5.7 Payment and Settlement Systems in India - Major developments in the past decade

5.8 Customer Grievances Redressal under Payment System
5.9 Payment Systems Vision Document (2009-2012)
5.10 Summary

5.11 Keywords
5.12 Review Questions
5.13 Further Readings

Objectives

After studying this unit, you should be able to:

Understand the concept of payment system
Explain the meaning of Clearing House, Clearing Process
Describe Role of ATMs, Credit/Debit Cards in payment systems

Explain how the credit card operates and the guidelines of RBI relating to credit card
operations
Explain Operations relating to Electronic Funds Transfer (EFT), Electronic Clearing Service
(ECS) MCR Clearing , Core Banking Solutions and their uses

Explain Meaning of Cheque Truncation and its uses
Explain Role of Reserve Bank of India in payment systems

Describe Vision Document of RBI for payment systems- 2005-2008
Describe an overview of Payment and Settlement System
Introduction

The central bank of any country is usually the driving force in the development of the national
payment system. The Reserve Bank of India (RBI) as the central bank of the country has been

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