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In India, payment systems are characterised by the presence of a large number of paper based transactions, with cheques constituting more than 80%in terms of volume. Recent initiatives by the Reserve Bank - in the form of providing for electronic payment systems and the Real Time Gross Settlement (RTGS) System - have provided a sound foundation for the migration of more safe, secure and efficient payment systems. While these systems have been registering growth rates which are encouraging, the potential to migrate from paper based cheques to other electronic means of funds movement is high.
Payment systems in India have a chequered history with the earliest system being coin based which dates back to many centuries...
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