In November 2001 RBI has introduced the Structured Financial Messaging System (SFMS), an application which would be riding on the backbone of the Indian Financial Network (INFINET) intended as a measure, to ensure greater security in the process of electronic funds transfers. The SFMS provides security in the various electronic funds transfers services introduced by RBI such as he Credit Clearing and Debit Clearing and the retail Electronic Funds Transfer (EFT) system and prevents unauthorized usage Objective and Benefits of Structured Financial Messaging System (SFMS) The usage of the Structured Financial Messaging System (SFMS) over the INFINET would automatically bring the benefits of safe, secure and efficient funds transfers There would also be the added benefit of settlement of inter-bank transfers taking place in the books of accounts of banks maintained with the RBI thereby providing for finality of settlement. Structured Financial Messaging System (SFMS) would have adequate security measures Continue reading
Indian Banking System
Summary of important sections of Banking Regulation Act
The Banking Regulation Act was passed as the Banking Companies Act 1949 and came into force wef 16.3.49. Subsequently it was changed to Banking Regulations Act 1949 wef 01.03.66. Summary of some important sections is provided hereunder.(Note: The section no. is given at the end of each item. For details, kindly refer the bare Act.) Banking means accepting for the purpose of lending or investment of deposits of money from public repayable on demand or otherwise and withdrawable by cheque, drafts order or otherwise (5 (i) (b)). Banking company means any company which transacts the business of banking (5(i)(c) Transact banking business in India (5 (i) (e). Demand liabilities are the liabilities which must be met on demand and time liabilities means liabilities which are not demand liabilities (5(i)(f) Secured loan or advances means a loan or advance made on the security of asset the market value of which Continue reading