India’s range of payment systems and accompanying regulation
The Reserve Bank of India (RBI) is the apex regulatory body for payments in India, it controls the inflow and outflow of money, it lays down regulations and laws for transacting and bartering in India, as well as procedures for regulating digital payments in India.
The broad framework for setting up payment systems in India was only set up as recently as 2007 by the Payment and Settlement Systems Act 2007 (PSS Act). It defines a payment system as any system that enables payments to be made between two people, (ie, the payer and the beneficiary).
Everything from the traditional paper-based clearing systems, which involve either cheques or money orders, through to more modern electronic payment systems, automated clearing houses and traditional debit and credit cards are covered by the PSS Act.
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