Lok Sabha has passed Payment & Settlement Systems (Amendment) Bill, 2014. It will amend Payment and Settlement Systems Act, 2007. It aims to bring India’s banking payment system in synchronization with international practices.
- It seeks improve the payment and settlement systems by increasing transparency and stability of Indian financial market.
- It has provision to protect funds collected from the customers by the payment system providers and to extend the Act to cover trade repository and legal entity identifier issuer. A Legal Entity Identifier will be a unique ID associated with a single corporate entity.
- It mentions that the decision of the court, tribunal or any authority will not impact the settlement which had become final prior to the issuance of the order.
- It will ensure that if a system participant becomes insolvent, the dues of people whose money is with it would be cleared first. Norms of banking as well as companies laws would not be applicable till such dues are cleared.