Jaitley introduces bill on payment, settlement systems

Union Finance Minister Arun Jaitley Monday introduced a bill in the Lok Sabha that seeks to increase transparency and stability of financial markets in the country in line with the globally accepted norms.

The Payment and Settlement Systems (Amendment) Bill 2014 seeks to amend the act passed in 2007.

The Payment and Settlement Systems Act, 2007 was enacted for regulation and supervision of payment systems in India and to designate the Reserve Bank of India as the authority for the purpose.

The new bill seeks to amend certain parts of the act to provide that if "a system participant" is declared as insolvent or is dissolved or wound up by an order of the court or an authority, it will not affect any settlement that has become final prior to such order or immediately after it.

It also seeks to insert new sections including one on protection of funds collected from the customers by the payment system providers.