Factor Analysis Approach to Customers’ Assessment of Electronic Payment and Clearing System in Indian Banking Sector

The process of deregulation and reforms in the Indian banking system resulted in the creation of an efficient and competitive banking system. The payment systems like cardbased payment systems, ECS, EFT, RTGS, NEFT and CTS have offered a variety of services to the customers. During the last three years, all the electronic modes of payment have shown better growth than the physical check-based system. The Reserve Bank of India is, therefore, taking necessary steps to provide efficient and integrated payment and settlement system in the country and is also taking steps to mitigate the loss and risk. The present paper primarily aims to study the impact of electronic banking on payment and clearing system and identifies the important factors for the customers to choose electronic banking as a mode of payment