E-Payments by Shubham Jindal https://padlet.com/shubham8424/4i7nyrkv44om 23/08/17 Class Notes for Digital Finance en-us 2017-08-23 12:37:50 UTC 2025-12-19 22:32:16 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Folder.png UK Payment Systems Infrastructure 2014 shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182307470 2017-08-23 12:56:49 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182307470 Legal & Regulatory Issues shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308128 1) Authorization
2) Finality of Payment
3) Regulation against Terrorism funding]]> 2017-08-23 12:59:41 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308128 Central Bank shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308424 Communicates to counter-party in another country for international payment]]> 2017-08-23 13:01:10 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308424 Settlement Banks shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308462 Settlement is the act of transferring ‘securities and final funds’ between two parties. In simple words, clearing is the process of determining the obligations – who owes what to whom, and settlement is the process of actually fulfilling those obligations]]> 2017-08-23 13:01:20 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308462 Clearing Banks shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308491 Clearing is the process of sending out, reconciling and in some cases confirming payment orders or security transfer prior to settlement.]]> 2017-08-23 13:01:29 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308491 Local Banks shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308508 2017-08-23 13:01:33 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308508 Payment Flow shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308913 Simply an accounting operation where debt is transferred from one side to another side of the chain.]]> 2017-08-23 13:03:07 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182308913 Clearing Vs Settlement shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182312646 Clearing is process of exchanging payment instructions between participating banks. It is a paper based order (cheque) or electronic order (BACS or CHAPS)

Whereas, Settlement is the process of debiting and crediting funds between banks. It is bilateral or multilateral.]]> 2017-08-23 13:18:13 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182312646 Gross Vs Net Settlement (Bilateral) shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182313398 2017-08-23 13:20:47 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182313398 NET Settlement shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182315206 Efficient: 
1) Banks have to hold less liquidity
2) Less transactions costs

Risky:
Unsecured credit are not settled immediately.]]> 2017-08-23 13:25:57 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182315206 GROSS Settlement shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182315632 1) More liquidity needed.
2) Very Stable]]> 2017-08-23 13:27:07 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182315632 Multilateral Net Settlements shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182315990 2017-08-23 13:28:23 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182315990 No LINK ATM Transactions in Singapore shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182321020 Well connected cities do not need such facility and only creates transaction costs]]> 2017-08-23 13:45:25 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182321020 Credit Card Transactions shubham8424 https://padlet.com/shubham8424/4i7nyrkv44om/wish/182323677 2017-08-23 13:54:18 UTC https://padlet.com/shubham8424/4i7nyrkv44om/wish/182323677