The Lok Sabha today passed the Payment and Settlement Systems (Amendment) Bill, 2014. The Bill proposes to increase transparency and stability of Indian Financial markets in line with globally accepted norms. Replying to a debate on the Bill in the House, Finance Minister Arun Jaitley said that it will provide better settlement and regulation for the payment system. He said, the bill also provides a statutory mechanism for settlements of payments in case the payments are wrongly credited in other account.

Mr Jaitley said that with these amendments, the unsecure creditors will get their share if the service provider becomes insolvent or bankrupt. Under the proposed amendment new sections have been inserted including protection of funds collected from the customers by the payment system providers.