Electronic Payment and Clearing System in Indian Banks : An Analysis

The banking sector is considered to be the back-bone of Indian economy. The economic reforms and the various e-banking techniques followed by the banks during the last decade strengthened their financial position. The adoption of IT and communication made the things easier for the banks. It made the flow of information smooth. The payment and the settlement system led to greater efficiency and financial stability. The present paper aims to analyze electronic payment & clearing system and the level of awareness of e-payment techniques. The data was collected between 2001-2013 of the electronic payment of SCBs. The present study is based on the secondary data collected from different journals, magazines, sites and published data from various issues of RBI. It found that cheque usage in the near future is next to impossible. However, the time may be ripe to aggressively promote electronic payment modes over cheques. The system provides payment gateways providers, utility companies, intermediaries, corporate users including educational institutions etc. need to work together and ensure that electronic payment modes are easy to use, settlement and reporting mechanisms along with grievance handling are efficient, with least inconvenience to customers