What is Payment and Settlement System?
The payment and settlement system in India is governed by the Payment and Settlement Systems (PSS) Act, 2007. According to definition of PSS Act 2007, Payment System means a system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement service or all of them. This includes the…
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Regulation of Payment Systems in India: Understanding the PSS Act, 2007
The smooth functioning of payment systems is vital for financial stability and trust in India’s banking ecosystem. To strengthen this framework, the Payment and Settlement Systems Act, 2007 (PSS Act, 2007) was enacted and came into force on 12th August 2008. This landmark legislation provides a legal foundation for regulating and supervising payment systems in…
Read article Foreign Exchange Management Act (FEMA), 1999 – A Simplified Guide
The Foreign Exchange Management Act, 1999 (FEMA) is India’s primary legislation governing foreign exchange. It was introduced to replace the restrictive **Foreign Exchange Regulation Act (FERA)**, with the goal of creating a more open, transparent, and investor-friendly environment for international trade and payments. FEMA empowers the Reserve Bank of India (RBI) to regulate foreign exchange…
Read article The Negotiable Instruments Act, 1881 – An Overview
The Negotiable Instruments Act, 1881 is a landmark Indian law that laid the foundation for the legal framework governing financial documents such as promissory notes, bills of exchange, and cheques. Enacted during the British era, the Act was designed to bring uniformity, certainty, and trust to commercial transactions by standardizing the rules around the use…
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Negotiable Instrument Act and negotiable instruments
The Negotiable Instrument Act, of 1881 was enacted on 9th December 1881 to define and amend the law relating to Negotiable Instruments i.e. Promissory Notes, Bills of Exchange, and Cheque. The act came into force on the first day of March 1882. The Act extends to the whole of India but nothing herein contained affects…
Liability of the Paying Bank – Section 31
According to Section 19. of the NI Act 1889, A promissory note or bill of exchange, in which no time for payment is specified, and a cheque, are payable on demand. Section 31 of the Negotiable Instruments Act, 1881 covers the liability of the drawee of a cheque. The section states that the drawee of…
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