The BPSS lays down the policies and standards relating to the regulation and supervision of both the existing and the evolving payment and settlement systems. For efficiency enhancements and risk reduction, usage of the Real Time Gross Settlement (RTGS) System and other electronic payment mechanisms are being encouraged in a big way.
Almost 40 per cent of the 70,000 plus bank branches in the country are now RTGS enabled. Sometime back, the Reserve Bank examined India’s position with regard to compliance with the Core Principles of Systemically Important Payment Systems. It was found that we were largely compliant with all Core Principles except the first one, i.e., "well founded legal basis".