Role of RBI in Payment System

CHAPTER 1 – INTRODUCTION

1.1 ABSTRACT

During the last two decades there has been a significant development in the financial sector of India. Various banks and financial institutions have played an important role always in strengthening economic growth. Reserve Bank of India (RBI) has undertaken various initiatives which include good prudential measures, risk management as well as to develop monetary markets. RBI plays a very crucial role in developing India’s payment system for both large as well as retail payments.  Electronic Clearing services also known as ECS Credit and Debit was announced in the 1990s. National Electronic Fund Transfer (NEFT) and the Real Time Gross Settlement (RTGS) were introduced in the year 2005 and 2004 respectively. RTGS system is established and it manages for settling for payment immediately when the request is made and it does not take much time for transferring any payments.

All the payment system which is initiated resulted in modern electronic payments in the country and is widely accepted. Even though cheque is still an important part of payment, transactions through it have been considerably reduced than before. RBI is providing various payment facilities which can be used by all. This project will help to understand it better about the payment systems which are available as well to understand the Payment and Settlement Systems Act, 2007 which is regulated by Reserve Bank of India (RBI) to know about the various powers and duty as well as the procedure for any settlements of any disputes. The research will thereby conclude by giving certain suggestions as per required.

1.2 STATEMENT OF PROBLEM

RBI, the central bank of India which needs to manage the currency flow in the economy and also to direct several banks in various matters. The authorization for payment system is issued by RBI. Also the various modes of payment system which has been started are been used by the public in large. The vast role of RBI for proper price stability in the economy gives a very high level of importance to analyze everything as well as for providing latest technology to the citizens. But there are various things which should be thought about for improving the payment system by improving security so that no type of illegal activity like hacking, etc. can be done and more number of people will have trust and can operate it safely.

1.3 HYPOTHESIS

Whether the change from paperless payment system to electronic payment system a safe and secure option?

CHAPTER 2 – REVIEW OF PAYMENT SYSTEMS

2.1 INTRODUCTION

To assist the clearance and settlement of monetary and other financial transactions such as payments, securities as well as derivative contracts is the role of financial market infrastructures which plays an important role in the economy. Reserve Bank of India, the central bank of India plays a crucial role in developing various payment systems which are safe, secure, efficient and authorized in India. In India, ‘paper based payments’ has been rapidly replaced by ‘electronic payments’. These types of payments have formed an integral part of payment system not only in India but globally. Now the people make payments through such digital platform such as by Debit card, Credit Card, Prepaid Payment Instruments, Mobile Banking, etc. for paying bills, transferring any money or for shopping. The use of cheque is always use by every individuals and these type of instruments made more secure payments from one person to another. The use of National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) was introduced for fast payments which reduced the use of paper based instruments to a certain extent.  Since then, Reserve Bank has authorized payment operators of prepaid payment instruments, card schemes and centralized clearing arrangements. Initiatives taken by Reserve Bank of India resulted in deeper acceptance of non-cash payment modes.

2.2 REVIEW OF PAYMENT SYSTEMS IN INDIA [1]

The Reserve Bank of India has introduced various efficient modes of payment systems in India to meet the requirements of public in large. The banking structure has been noted whenever there is a new payment options made available.

A. PAPER-BASED PAYMENTS

Paper-based instruments such as cheques, drafts, etc. are nearly 60% in volume of total non-cash transactions. The share started gradually decreasing over a period of time and various electronic modes of payments which gained popularity because of the efforts taken by the Reserve Bank of India for popularizing the electronic mode in preference to cash and cheques. Magnetic Ink Character Recognition (MICR) for efficiently processing of cheques was introduced because cheques have an important place in India. Although the overall thrust is to reduce the paper based transactions, it would take some time for completely shifting to electronic modes because of various factors one of which is the citizens rely much on paper based transactions and using it as mode of payment brings more trust and many people in the country find it difficult to use such electronic mode.

B. ELECTRONIC PAYMENTS

The electronic based technology for improving the payment and settlement system infrastructure was initiated by RBI in the mid-eighties and early nineties. Various payment schemes which is initiated by RBI for cost effective alternative system are as follows-

i. Electronic Clearing Service (ECS) Credit –

This scheme was introduced in the year 1990s for handling the huge and repetitive needs of corporates and various other institutions (for e.g. paying salary, interest, dividends). It manages accounts which needs to be credited on a specified date and is now available in all major citizens. In the year 2008, the bank introduced new service which is known as National Electronic Clearing Service (NECS) at National Clearing Cell (NCC) situated in Mumbai. It manages the various credits to beneficiary accounts with destination from several branches across the country which is against the single debit of the sponsor bank. It also has a system of pan-India features on Core Banking Solutions (CBS) of member banks.

ii. Electronic Clearing Service (ECS) Debit –

This scheme was introduced by RBI to provide a quick method of repetitive collections of utility corporations. It manages subscribers of such company for making routine payments by instructing their bank branches to debit and transfer the money. Due to this way of scheme it reduces the use of paper instruments and also brings efficiency as well as customer satisfaction. No prescribed limit is stated for the amount of payment. It is widely available across the country. There is also another service which is known as Regional Electronic Clearing Service (RECS) under which the sponsor bank uploads the data through web server of RBI containing the directions to the customer of CBS. Further this scheme will arrive at the settlement and will generate bank wise reports and will be made available through the web server to manage the bank branches to either credit or debit the account of the beneficiaries.

iii. National Electronic Funds Transfer (NEFT) –

There was a need for more secure payment system for managing one to one funds transfers of individuals, corporates, etc. In the year 2005, NEFT system was provided for making settlements at hourly intervals making the payment more fast and secured. It allows accepting cash for originating transactions, initiating request to transfer money without any specified limit, also receiving the confirmation of the time of credit to the account of the receiver. This system replaced the Electronic Funds Transfer (EFT) which allowed the account holder of the bank to transfer funds electronically to another holder with any other bank across the country.

iv. Real Time Gross Settlement (RTGS) –

It is a type of system where transfer can be done from one bank to another on a ‘real time’ and ‘gross’ basis. It means payment is not respect to any waiting time and transactions are settled on one to one basis making it irrevocable once it is processed. It settles inter-bank payment and transactions above 2 lakh.

v. Clearing Corporation of India Limited (CCIL) –

It was set up by banks, institutions in 2001 for functioning as a service organization for settlement in money market, foreign exchange and securities. It plays a crucial role of central counterparty where contracts between seller and buyer get replaced and two new contracts are made i.e. between CCIL and each parties. This process called Novation where the credit risk between seller and buyer is removed with Clearing Corporation of India which follows specific risk management. Some of the corporation is National Commodity Clearing Ltd., Metropolitan Clearing Corporation of India Ltd.

C. OTHER PAYMENT SYSTEMS

i. Prepaid Payment Systems–

It is a payment instruments which manages the purchase of goods and services against the value on such instruments. In such instruments the amount which is stored denotes the money paid for by the respective account holders either by cash or debit to a bank account or by paying from credit card. The prepaid instruments can be used in the form of smart cards, internet accounts, wallets, etc. After the Payment and Settlement Systems Act were formed, guidelines for issuing and functioning of prepaid instruments [2]were allowed in public interest to regulate it in the country. However, the cross border transactions have not been permitted yet, except for the payments which are approved under Foreign Exchange Management Act, 1999.  The famous prepaid payment instruments which are been by people widely are Amazon Pay, PhonePe, Paytm.

ii. Mobile Banking System –

Smart phones as a mode in providing banking facilities increased its importance over the last few years. Reserve Bank in its guidelines about mobile banking in the year 2008 stated that banks which are licensed in India after obtaining permission from Reserve Bank of India are allowed to offer mobile banking. Guidelines focuses on various systems for inter-bank arrangements through RBI’s authorized systems. It helps to manage funds transfers from one account to another on real time basis. Some of the mobile banking services are PayZapp by HDFC Bank, iMobile Pay by ICICI Bank, etc.

iii. ATM –

Currently there are more than 65,000 ATMs in India. Upto 5 times a month a saving bank customers can withdraw cash without any charge. If any customer services arises out of failed ATM transactions where the accounts get debited without receiving the actual cash, RBI has compulsory direct to re-credit such failed transactions within a period of 12 working days and compensation for delay if it goes beyond the specified period.

The era of digital payment has brought its way in such a manner where it has become the very important medium for paying from one person to another through a secure mode on real time basis. Further instead of having plenty of cash people prefer such digital payments where it is easy and safe to pay.

CHAPTER 3 – ROLE OF RESERVE BANK OF INDIA UNDER THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007

3.1 INTRODUCTION

The Indian financial regulatory was doing various analysis in the year 2008-2010 because it released various set of measures, to develop the electronic payments in India. The payment and settlement systems which are regulated by the Payment and Settlement Systems Act, 2007 was legislated in December 2007. Further, the Payment and Settlement System Regulations, 2008 which was framed and these both act came into effect from August 12, 2008. A sub-committee of Reserve Bank of India known as the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) is the policy making body on various payment system in the country. Its role is for authorizing, prescribing policies for regulating and managing the payment and settlement systems in the country. The Department of Payment and Settlement Systems of Reserve Bank of India execute the directions which are given by the Board. The Payment and Settlement System Act, 2007 is made for regulating the payment and settlement system in India, where under Section 4 it is stated that no person other than the Reserve Bank of India (RBI) can operate payment system in India except approved by RBI[3].

3.2 PROCEDURE FOR COMMENCING A PAYMENT SYSTEM

As stated above, after authorized by Reserve Bank of India any person can operate payment system in India fulfilling all the necessary procedure as required by RBI. The procedure is as follows –

a. A person needs to apply by making an application [4]for authorization to Reserve Bank in the manner prescribed in the Payment and Settlement Systems Act, 2007 and along with fees which may be prescribed.

b. After the application is received, the Reserve Bank may make all the necessary inquiries [5]for satisfying the genuineness of the particulars which is submitted by the applicant. A person who will authorized by Reserve Bank for conducting this inquiry may require to prepare a report where all the information which is required should be written along with the capacity of the applicant to operate payment system.

c. The RBI may, if satisfied with all the inquires as per the Act, issue an authorization for operating having regard to the considerations [6]which is the need for payment system or the services proposed, the technical standards, the terms and conditions of operation including security procedure, the manner transfer of funds will be achieved, the procedure for payment instructions under payment system, financial status of the applicant, interest of consumers which includes their relationship with payment system providers, policies of monetary and credit, any other elements which may be relevant by the RBI.

d. Further the authorization issued by RBI shall be in the form prescribed which will include the date when it takes effect, the conditions, specify the payment of any fees if pending, if felt necessary, to furnish security for proper conduct, to be in force until the authorization is withdrawn.

e. RBI can also refuse the application by giving a written notice along with reasons. Also, before such application is refused the applicant is given a opportunity of being heard. Every application shall be managed by Reserve Bank and dispose the application within six months from the date of filing.

f. If a system provider does not follow the regulations[7], violates any provisions of the Act, fails to fulfill the orders which is given by the designated authority the RBI may revoke the authorization which is issued as the provisions of this Act.

3.3 POWERS OF THE RESERVE BANK OF INDIA

i. To Determine Standards – [8]

RBI from time to time prescribe –

a. Payment instructions.

b. Timings which needs to be maintained by the payment systems.

c. The method of transfer of funds either by way of paper or electronic or in any other manner between banks or between system participants and banks.

d. Such other standards which needs to be complied with the payment systems.

e. The norms for membership which includes termination, rejection and continuation.

f. Various conditions on which system participants will participate in fund transfers also their rights in such funds.

RBI may also from time to time if necessary, issue guidelines for the good and well-organized management of payment system.

ii. Change in payment system [9]–

The structure or the functioning of payment system cannot be changed without the approval of the Reserve Bank and sending notice to all the participants not less than thirty days after the RBI approves. If in the interest of public interest of the country, the RBI can also allow for making change in payment system without giving notice to the system participants or give notice for a period longer than thirty days. If RBI has any objections with the changing of the system it shall communicate with the system provider within two weeks of receipt.

iii. To call for documents or any other information [10]–

The RBI may if necessary, call for any returns or documents or any other information with respect to the functioning of the system and it should be in such form which RBI may prescribe.

iv. Power to access any information [11]–

All system participants have to provide all the information to Reserve Bank of India. Further RBI has also the right for accessing any information with respect to the functioning of payment system.

v. Power to inspect [12]–

Any RBI officer authorized for ensuring compliance within the provisions of the Act, may inspect any computer system or documents and are free to enter any premises as well as call any employee of such system participant for furnishing such documents or information as the officer may require.

vi. Confidential Information[13]–

Any information received by RBI under provisions 12 to 14 should be kept confidential. RBI have the power to disclose any documents or information to any person of which is considered necessary for protecting the payment system or integrity or in public interest or interest of monetary policy.

vii. Auditing as well as inspection [14]–

For carrying out functions under the Act, RBI can conduct inspection of the payment system and also audits. Also, system provider shall have the duty to assist to carry out such inspection or audit.

viii. Issue Directions [15]–

When the RBI comes to know that a system participant is engage in any Act, which will result in systemic risk being not controlled properly or which will affect the monetary policy of the country, than RBI may issue directions in writing to the system participant to stop from engaging in the Act or the course of conduct and also to perform acts which are necessary to remedy the situations.

ix. Power to give directions generally [16]–

For enabling to regulate the payment systems or functioning or proper management of such system in the interest of public, RBI may lay down such policies for the regulation of payment systems which can include electronic payments, non-electronic, international payments and can also give directions to system providers or any other person either generally concerning to conduct of business of payment system.

x. Directions of RBI to be complied [17]–

Person on whom directions has been issued shall within the time specified, will submit a report of compliance which needs to be furnished to Reserve Bank.

xi. Power to impose fines [18]–

Whoever makes false statement in the application [19]knowing it to be false or omits to make statement or if any provision of Act is contravened[20], or if any default is made with other requirement of the Act of which no penalty is specified, the Reserve Bank may impose penalty of not more than five lakh rupees or twice the amount of which default is made whichever is more. Also, a penalty of rupees twenty five thousand can be imposed if the contravention is a continuing offence. Before that, the RBI shall serve notice on defaulter to show cause why such amount should not be imposed on him and opportunity of being heard should be given to him. Within a period of thirty days the amount imposed shall be paid.

xii. Power of compounding offence [21]–

Notwithstanding contained in Code of Criminal Procedure, 1973, any offence punishable of 2 of 1974 under Act any contravention with fine or imprisonment, on receipt of application either before or after institution, can be compounded by officer of RBI which is duly authorized. When any contravention of offence is compounded then no further proceedings can initiated against the person.

3.4 SETTLEMENT OF DISPUTES

• Settlement provider will have to create a panel [22]of not less three system participants other than participants who are parties to the dispute for deciding the disputes in respect to matter connected with the functioning of payment system. When any dispute between system provider and system participants or between system participants is not resolved then the matter is referred to Reserve Bank of India.
• When the dispute referred to Reserve Bank shall be disposed of by an officer authorized either generally or specially for such dispute and the decision of Reserve Bank shall be binding and final.
• When dispute arises between Reserve Bank while acting its capacity as participant or provider and another participant or provider, such matter will be referred to Central Government who will authorize an officer which will not be below the rank of Joint Secretary for settlement and the decision would be final.

CHAPTER 4 – CASE STUDY ON PAYTM

4.1 BACKGROUND

A well-known fintech company known as Paytm is an Indian e-commerce payment system launched by One97 Communication Limited which is based in Noida, Uttar Pradesh was established in the year 2010 by Vijay Shekhar Sharma, CEO and the founder of Paytm is now in the list of top 100 richest men of India. A recharge platform in the year 2010 became the most successful mobile payment and transfer of money which is used in India some years back. It was a very big challenge for Paytm for a country like India which used to do transact mainly in cash. By various manners it tried to establish themselves i.e. by offering cashback      and other offers which attracted the market and by this slowly many people started shifting from cash transactions to more secure cashless transactions and raced ahead of its competitors  i.e. Freecharge, Mobikwik, etc.

Paytm spent nearly 14,500 crore for convincing Indians to substitute cash by digital payments. In the year 2016, after Demonetization the company was in its peak stage where almost every single person switched themselves to cashless transactions. The company has good investments from biggest industry leaders like Ratan Tata of Tata Industries, Jack Ma of Alibaba, the most renowned investor Warren Buffet.

4.2 BUSINESS MODEL

Paytm also known as “Payment through Mobile” launched as online website and transform to virtual bank model. The company provides now wide services such as banking, marketplace, bill payments, mobile payments as well as recharge. It has more than 100 million users so far.

Initially the company’s service proposition was recharging after which they started providing new services like Paytm Wallet, E-commerce to Digital Gold. It provides 24*7 customer care so that its users can connect with any issues. Risk dangers such as security and fraud the company are taking effective measures in protecting its customer’s money. The company is focusing on digital currency aspects by innovating the Paytm wallet which is a mobile wallet, a pre-paid instrument. The wallets used by the company are a semi-closed loop wallet which can make payment on different sites. No charges are levied for adding money into wallet or transferring from one wallet to another. It charges if payment is made through bank transactions. As per Reserve Bank of India guidelines, any money deposited by the users in Paytm wallet shall be deposited by Paytm in an Escrow Account with a partner bank. This escrow account fetches certain interest which is decided as per the contract between bank and Paytm.

Most of the expenses of the company is relating to its platform and customer acquisition. Its expenses are shared by many businesses across the world where cost is considerable. Money used is higher than the revenue which it makes in initial purchases. The major part of the budget of the company is used on its security and to avoid risk of fraud. It also includes a system which enables to prevent money laundering risks. Through the usage of its platform the company makes commissions from transactions.

4.3 FEATURES

Initially Paytm’s purpose was to provide mobile recharge. Its service standards are effective as those of other service providers. Presently, per charge 2-3% commission is gained. It has progressed more in Digital gold even by partnership with MMTC-PAMP a famous gold refiner. The company is set up by joint venture between India’s MMTC which is a Government Undertaking and Switzerland’s PAMP which is the world’s leading gold brand. By this Digital gold model the users can buy, sell or even store gold in digital platform. The company is also planning to motivate its users to get their own accounts. This account will help to get easy access to other services of Paytm.

With the help of Paytm Mall which was a good concept where it attracts number of sellers to its various goods like shoes, clothes, etc. it helped to deliver products. It allows sellers to sell their products with a commission of 5-20% from sellers for every products sold. In the year 2014, it launched Paytm wallet for either transferring funds or to purchase anything from the store. In 2017, introduced an insurance cover, to protect its users balance, without any additional costs for protecting against any fraudulent use. Company will insure its customers up to a limit of Rs. 20,000 or the amount in their wallet, whichever is lower.

During 2018-19 there was a rise of online shopping and Paytm made the move by launching ‘Paytm Zip’ which is an e-grocery app to connect grocers and users.

Another type of model in the year 2015 which is RBI granted permission to set up a Paytm Bank. Renu Satti was the CEO of Paytm Payments bank and currently Satish Kumar Gupta is holding this position. The guidelines issued by RBI is that, such payment banks can accept deposits of up to 1 lakh from each customers and    services which will be issued are ATM cards, net banking and other non-risk products such as mutual funds and insurance. Further, Paytm Payments banks cannot offer loans as well as credit card.

4.4 DEMONETIZATION

The Demonetization effected every single person of the country and also globally, but it was very fortunate to Paytm. Our Hon’ble Prime Minister had the aim to shift the economy to fully digital. Through digital way the government can also keep a track the money and decrease the flow of black money in the market. During that time Paytm was the biggest digital payments platform. It widened its services to retail, vegetable markets; even the smallest shops could use it. There was growth of around 300% at offline retail stores. The company recorded an annual rise to Rs. 38.07 in the financial year 2016-2017.

4.5 CHALLENGES

• After Demonetization, US Payment Company called Paypal filed case against Paytm for using their logo which is looking similar. Paypal were using this logo since 2007. This can lead to misunderstanding in India with respect to the platform. Case is still going on and if Paypal wins, due to trademark infringement Paytm will have to pay heavy charges.
• With the growth of digital payments, Unified Payments Interface (UPI) platform is now leading the market. Various large companies as well as small startups like Reliance industries, Razorpay are launching UPI products. Two big companies which started payment app giving a competition to Paytm are Walmart-owned PhonePe and Google Pay. These companies have recorded more number of transactions than Paytm. Even Paytm started BHIM UPI platform, but these two companies were far ahead by bringing various offers, cashbacks and different market strategies due to which Paytm recorded very lower transactions.
• Paytm has been losing its share in front of such big competitors. Further, the biggest threat which the company is facing is the Jio-Facebook deal. Already Jio has started on-boarding local shops in their platforms which will than eventually motivate such owners to use Whatsapp Pay, launched in the year June 2020. More than 400 million in India are using Whatsapp. Incorporating a payment option will make more useful for users for sending money. Various concerns have been raised among investors about Paytm’s business model. Losses rising up will be hard for Paytm to continue the trust of its investors.
• Paytm from years tried to increase various facilities like travel, shopping, bookings of bus, movie, etc. and maintaining it for years with proper capital and investors support makes such a company a far more reliable and efficient company.

4.6 FUTURE INVESTMENT

CEO Vijay Shekhar Sharma expects in turning the profitability in next two years by monetizing the customer base and financial services as two main areas. Further, the company also plans to invest around 10,000 crore [23]for expanding financial services.  In the year 2019 the company raised USD 1 billion (around 7,000 crore) in funding from US firm T Rowe Price and also by existing investors such as SoftBank and Alibaba.

CHAPTER 5 – SUGGESTION & CONCLUSION

5.1 SUGGESTION

Various technological modifications in the payment system bring good challenges as well as opportunities for the finance and banking sectors. Managing such technological modes of payments is thus a key challenge for the Banking industry in India. In such developing country where there is a huge population where people don’t have proper access to such various types of payment services due to improper internet access, or because of not having proper knowledge about such technology also where there are locations where this type of services could not be reached. The important step firstly which needs to be taken is to given consistent services and making awareness about the schemes as well as to make people know about digital payments available irrespective of kind of customer whether it be in rural or urban areas. The government along with RBI introduced various schemes out of which one is Pradhan Mantri Jan Dhan Yojana in promoting financial inclusion, mainly in rural areas.

For promoting digital payments there should be more schemes made available so that it can be used easily by merchants and costumers. The service charges levied by banks on such digital payments should be minimized to a certain level so that people can be encouraged and know the benefits for such e-payments that is safe, secured and fast to transact. Various frauds are also been done in digital payments whether it be mobile banking or prepaid based instruments which makes it more riskier for the people to use such modes therefore, there should be more strict cyber security protocols to have a secured digital payments. There is also rise of new type of e-currency known as Cryptocurrency which has been started using globally by many people and in India also there is a hope where RBI will bring soon its own Cryptocurrency which brings more opportunity as well as challenges for bringing new schemes as well as new payment gateways. It was banned earlier in the year 2018 but was been lifted by Supreme Court in March, 2020. Such huge payments systems such as Google Pay, Paytm, etc. which are giving the best facilities for the betterment of the society towards the payment from one to another needs to also bring more schemes. Recently there was an issue with relating to Paytm where many users receive fake text messages in the name of the company either for doing KYC (Know Your Customer) or other things relating to payments this needs to be highly kept in mind by the company and action should be taken because many people had been trapped with such fraudulent ways and it is also lowering the reputation of the company. With such cashless payments India is shifting rapidly from paper based to a digital economy. With various schemes and visions to make India more advanced country, proper efficiency and bringing awareness to the people of the nation is the important aspect. If all the above measures will be taken than there will be a huge change in the economy.

5.2 CONCLUSION

Reserve Bank of India has brought significant changes in the payment systems over the years. Various companies too had brought innovations in digital payments for bringing a change in the economy. Information and communication technology developed bringing various changes in the payment system. With proper customized payments as well as settlement options in rural and urban the customers will be able to avail the electronic clearing options. Adoption of electronic payments brought changes in company’s business models and also working on technology solutions bringing more secured platforms. Interbank Mobile Payment Service (IMPS) introduced by RBI was also a huge success in mobile transfers between bank holders. Payments via NEFT or RTGS is also been used widely till date and it is without any doubt also a type of secured and fast payment but electronic fund transfers brought massive changes in increasing cashless payments in India. With proper regulations and supervision RBI has always managed with the proper working of such payment system by the people and also keep a watch on the various system providers who are been authorized. The Payment and Settlement Systems Act, 2007 thus brings various laws which need to be followed and if any such law is violated, then consequences will be faced as per the provisions of the Act. Thus, the various payment systems introduced by Reserve Bank of India from time to time, brought huge deviations from paper based payment systems to a secured, quick digital payments and over a period of time India will soon be an advanced technological economy with more innovative payment systems.

BIBLIOGRAPHY

A. PRIMARY SOURCES

1. The Payment and Settlement Systems Act, 2007.

2. Payment and Settlement Systems Regulations, 2008.

B. SECONDARY RESOURCES

ARTICLES

a. G. Parimalarani, “A Study of Payment and Settlement System in Indian Banks”, International Conference on Management and information systems, ISBN 978-1-943295—04-3, (September 24, 2016).

http://www.icmis.net/icmis16/ICMIS16CD/pdf/S137.pdf

b. Aisha Badruddin, “Financial market infrastructures: A study on Payment and settlement system in Indian banking sector”, International Journal of Engineering Technology, Management and Applied Sciences (IJETMAS), Volume 3 Issue 2, ISSN 2349-4476, (February, 2015).

c. Kandarp Singh, Ahaana Mahanti, Sayani Mandal, “Opportunity Analysis: The Story of Paytm during Demonetisation”, ResearchGate, (Septemeber, 2017)

https://www.researchgate.net/publication/331036463_OPPORTUNITY_ANALYSIS_THE_STORY_OF_PAYTM_DURING_DEMONETISATION

d. Rajnish Jindal, “Contemporary Developments in Payments System in India”, International Journal of Recent Research Aspects, ISSN 2349-7688, Volume No. 2, Issue 3, PP. 144-147, (September 3, 2015).

https://www.ijrra.net/Vol2issue3/IJRRA-02-03-26.pdf

WEBSITES

• https://bstrategyhub.com/paytm-business-model-how-does-paytm-make-money/
• https://businessoptions.in/blog/paytm-s-success-story#:~:text=Paytm%20has%20its%20own%20payment,transaction%20done%20through%20its%20gateway.&text=As%20per%20the%20RBI%20guidelines,Account%20with%20a%20partner%20bank.
• https://www.dtech04.com/2019/07/paytm.html
• https://startuptalky.com/paytm-case-study/
• https://www.financialexpress.com/economy/demonetisation-anniversary-how-mobile-wallets-like-paytm-made-a-fortune-post-noteban/924491/
• https://casereads.com/case-study-the-journey-of-paytm/
• https://www.livemint.com/companies/start-ups/and-now-paytm-faces-its-moment-of-truth-11578503275841.html
• http://vinodkothari.com/2017/04/overview-of-regulatory-framework-of-payment-and-settlement-systems-in-india-by-anita-baid/
• https://blog.ipleaders.in/payment-settlement-system-act-2007/

[1] Reserve Bank of India, “Payment and Settlement Systems”

Master Direction on Issuance and Operation of Prepaid Payment Instruments

[2] Reserve Bank of India, “Master Direction on Issuance and Operation of Prepaid Payment Instruments”, Master Direction DPSS.CO.PD.No.1164/02.14.006/2017-18 

[3] The Payment and Settlement Systems Act, 2007, § 4, Act of Parliament, 2007, (India).

[4] The Payment and Settlement Systems Act, 2007, § 5, Act of Parliament, 2007, (India).

[5] The Payment and Settlement Systems Act, 2007, § 6, Act of Parliament, 2007, (India).

[6] The Payment and Settlement Systems Act, 2007, § 7, Act of Parliament, 2007, (India).

[7] The Payment and Settlement Systems Act, 2007, § 8, Act of Parliament, 2007, (India).

[8] The Payment and Settlement Systems Act, 2007, § 10, Act of Parliament, 2007, (India).

[9] The Payment and Settlement Systems Act, 2007, § 11, Act of Parliament, 2007, (India).

[10] The Payment and Settlement Systems Act, 2007, § 12, Act of Parliament, 2007, (India).

[11] The Payment and Settlement Systems Act, 2007, § 13, Act of Parliament, 2007, (India).

[12] The Payment and Settlement Systems Act, 2007, § 14, Act of Parliament, 2007, (India).

[13] The Payment and Settlement Systems Act, 2007, § 15, Act of Parliament, 2007, (India).

[14] The Payment and Settlement Systems Act, 2007, § 16, Act of Parliament, 2007, (India).

[15] The Payment and Settlement Systems Act, 2007, § 17, Act of Parliament, 2007, (India).

[16] The Payment and Settlement Systems Act, 2007, § 18, Act of Parliament, 2007, (India).

[17] The Payment and Settlement Systems Act, 2007, § 19, Act of Parliament, 2007, (India).

[18] The Payment and Settlement Systems Act, 2007, § 30, Act of Parliament, 2007, (India).

[19] The Payment and Settlement Systems Act, 2007, § 26 (2), Act of Parliament, 2007, (India).

[20] The Payment and Settlement Systems Act, 2007, § 26 (6), Act of Parliament, 2007, (India).

[21] The Payment and Settlement Systems Act, 2007, § 31, Act of Parliament, 2007, (India).

[22] The Payment and Settlement Systems Act, 2007, § 24, Act of Parliament, 2007, (India).

[23] https://www.livemint.com/companies/news/paytm-founder-reveals-road-to-profitability-may-take-2-yrs-to-come-out-of-red-11583898917566.html