Indian Parliament Passes Payments and Settlement Bill
The Indian Parliament agreed legislation that aims to address the problem of insolvency in the country’s payment and settlement system by increasing transparency and stability and bring India’s banking payment system into line with international practices.
Payments and Settlement Systems (Amendment) Bill 2014
was passed after members of parliament (MPs) cut across party lines to give it their support. Moving the amended bill, India’s finance minister Arun Jaitley said it was needed to address the issue of insolvency and provide protection for payments.
The amendment to the
Payment and Settlement Systems Act 2007
was proposed to update the regulations in line with globally accepted standards.
The amendment seeks to protect funds collected from customers by payment system providers and to extend the Act to cover trade repositories and issuers of legal entity identifiers (LEIs), an unique ID associated with a single corporate entity.