Role of payment settlement system indicators in indian banking sector

The introduction of Information and Communication Technology (“ICT”) has renewed the financial services sector particularly in the banking sector. With promising popularity and rivalry, most of the banks have accepted the value of electronic banking concept and they are adapting themselves with the innovative technologies. Electronic banking has made the receipts and payments operations of the banks electronically which facilitates to increase the satisfactory level of the customers, reduces cost, better productivity and a variety of banking operations. The payment system initiatives taken over the last few years have resulted in acceptance and penetration of modern electronic payment systems in the country. India has multiple payments and settlement systems which includes both gross and net settlement systems. The aim of the study is to evaluate the role of payment settlement system indicators, trends in Information Technology (“IT”) and the challenges faced by Indian banks in the changing scenario.