PSSC Full Form-Payment and Settlement Systems Committee

Payment and Settlement Systems Committee: Ensuring Financial Stability and Efficiency

The Payment and Settlement Systems Committee (PSSC) oversees financial transactions, ensuring security, efficiency, and economic stability through robust payment systems.

This article explores the functions, importance, strategies, challenges, and future of PSSC.

Functions of the Payment and Settlement Systems Committee

PSSC roles:

• Regulation: Sets payment policies.
• Infrastructure: Promotes digital payments.
• Security: Implements cybersecurity measures.
• Supervision: Monitors banks, providers.
• Cross-Border: Streamlines international payments.
• Risk Management: Mitigates financial risks.

Importance of Payment and Settlement Systems

PSSC significance:

• Ensures smooth transactions.
• Builds public trust in banking.
• Drives economic growth.
• Reduces financial fraud.
• Promotes cashless payments.

Key Strategies for Effective Payment and Settlement Systems

PSSC strategies:

• Legal Frameworks: Enforces regulations.
• Technology: Adopts blockchain, RTGS.
• Cybersecurity: Uses encryption, fraud detection.
• Inclusion: Expands financial access.
• Innovation: Tracks payment trends.

Challenges in Payment and Settlement Systems

PSSC challenges:

• Cybersecurity threats like fraud.
• Regulatory compliance complexities.
• Digital divide in rural areas.
• Cross-border transaction issues.
• Technological disruptions.

Future of Payment and Settlement Systems

PSSC trends:

• Blockchain for transparency.
• AI in fraud detection.
• CBDCs for digital currency.
• Real-time payments expansion.
• Regulatory enhancements.

Payment and Settlement Systems Committee (PSSC) ensures financial stability through secure, efficient payment systems, shaping a digital economic future.

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