eng
competition

Text Practice Mode

chsl practice

created Aug 20th 2018, 06:01 by somnath mondal


4


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398 words
51 completed
00:00
Sir, I am aware that there is no explicit law at present enabling the Reserve Bank of India or any other institution for direct regulation and supervision of the various payment systems in the country. Approximately, 1500 clearing houses. which are located all over the country, are run by various banks. the clearing houses are clearing paper instruments manually. Only 65 clearing houses have got mechanised clearing system. there is lack of standardisation in their methods of work. Many times, their functions are operationally risk prone. The disturbing aspect is that the Reserve Bank of India does not have powers to regulate them. Yet, there are a section of people who say this Bill is unnecessary. Today, the position is that people are buying cheques which can be encashed in any of the banks when banks are connected electronically. RBI is not in a position to control these functions. the central Bank had mooted a proposal that a separate organisation be set up for retail payment system in place of the existing arrangement of clearing houses and the settlement of accounts.  
Banks are moving towards global market. The level of technology also varies from time to time. when the word is developing into a small spectrum with the tremendous increase in clearing funds, there is a need to take up modern tecnology. One should bear in mind that money is considered as a means of  exchange. With internet banking coming into force, money has moved from paper to electronic form. I was astonished to learn that the amount of money movement today is much more than the money that is with various public and private banks. All members of clearing house enter into a contractual relationship whith the manager of the clearing house. there is an urgent need, therefore, for keeping our financial market free from legal uncertainty. there is every likelihood that soon private players will enter the field of clearing house transactions.
Keeping these things into consideration, and amendment has been circulated now. New innovations and technology in settlement area also very much required. With the advent of private player and new technology, it is suggested to bring forward this comprehensive Bill.
This Bill  gives legal recognition to the transction procedures and settlement. This Bill considers paper, cash, cheque, drafts, electronic fund transfer, credit or debit card transfer to be a part of payment as well.

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