Chidambaram introduces Payment and Settlement Systems Bill in LS

New Delhi, Nov 23 (UNI) Finance Minister P Chidambaram today introduced in the Lok Sabha the Payment and Settlement Systems Bill, 2006 which seeks to provide regulations and supervision of payment systems in the country and to designate the Reserve Bank of India (RBI) as the authority for the purpose.

Moving the Bill, the Finance Minister said at present the payment systems were not properly regulated with clearing houses not being legal entities but voluntary bodies of the banks and were of contractual nature.

The Bill seeks to set up a new National Payments Corporation of India which will take over all operation of retail payment systems.

As per the Bill, the RBI will regulate and oversee the payment and settlement systems in the country, including those operated by non-banks like CCIL, card companies, other payment system providers and proposes an umbrella organisation for regulating retail payments.

UNI