Parliament passes Payments and Settlement Bill, 2014
Parliament has passed Payments and Settlement Bill, 2014. It was first passed in Lok Sabha on December 9, 2014 and later in Rajya Sabha on April 27, 2015.
The bill seeks to amend the Payment and Settlement Systems Act, 2007.
The bill aims at
- Addressing the problem of insolvency in the payment and settlement system by increasing transparency and stability in it.
- Bringing India’s banking payment system in sync with international practices.
Key facts of Bill
- Seeks to improve the payment and settlement systems by increasing transparency and stability of Indian financial market.
- 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.
- 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.
- 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.