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The Reserve Bank of India on Tuesday said a new institution will be set up in the current fiscal for retail payment systems. A national settlement system would be operationalised by the end of the current fiscal.
The new institution would be a limited company, owned by banks, and would act as an umbrella organisation for retail clearing operations — paper- based as well as electronics.
In a vision document, which details the action plans to upgrade payment systems, RBI has set definite milestones during next three years. It also emphaises creation of sound legal base through payment system act and regulations.
Apart from starting robust technology intensive electronic credit system (ECS) and electronics funds transfer facility (EFT), the proposed institution would also take initiatives on converting existing MICR clearing to cheque truncation based clearing, RBI said.
The proposed NSS system would facilitate centralised settlement of all clearing transactions, RBI said.
RBI software for cash withdrawal tax
NEW DELHI: RBI will put in place a software for banks to deduct the new bank cash transaction tax from the current and fixed deposit accounts of individuals who withdraw cash above Rs 25,000 on a single day. The system would be ready by the time the Finance Bill 2005 is passed in Rajya Sabha and gets President’s assent, a Finance Ministry official said. — pti
