Indian e-currency scores over the paper one

The fact that virtual currency has a priority over real one is beyond any doubt. Kilograms of money are not attractive and out of fashion. More over, they are too inconvenient for settlements. Understanding the present situation the Reserve Bank of India has announced that beginning from April 1 all transactions with value 10 million rupees and above made between banks, primary dealers, non-banking finance companies, the money market, government securities, and the foreign exchange market - all these transactions will be conducted with the use of electronic payment tools.

In their official statement the central bank has said that it has three modes of electronic payments: real time gross settlement system (RTGS), national electronic fund transfer system (NEFT) and electronic clearing service (ECS). According to their words these three ones ensure safety and security of the payment system.

Hitherto the most part of settlements was made by means of paper money that is too slow and connected with various difficulties and problems. So, before conducting some transaction any bank has to route paper money payments go through the process of a clearing cycle that cause time delay and unnecessary expenses. The authorities hope that this decision will help to promote the development of economy and will bring the economy of the whole country to a higher level.

Aynny, reporter of Ecommerce Journal