To make sure that the payment systems are secure and safe, RBI has proposed to make it compulsory for all the entities under the RBI control to carry out their payment transactions through an electronic medium. The RBI plans to bring this rule into action starting April 1, 2008.

The rule would apply to transactions of Rs 1 crore and above, made between all the banks, primary dealers and non banking finance companies (NBFC’s) .It would also apply to transactions in the RBI regulated markets i.e. the foreign exchange market , money market and the Government securities market.

The three electronic modes of payment, suggested on the RBI website are National Electronic Fund Transfer (NEFT) System, Electronic Clearing Service (ECS) and Real Time Gross Settlement (RTGS) System.

RBI is also planning to make it compulsory for the Credit Card issuing Companies to register themselves with the RBI, prior to starting their operations.