PRESENTED BY :MOHD.

SHAN
MBA (MARKETING)
DEPARTMENT OF BUSINESS
ADMINISTRATION
UNIVERSITY OF LUCKNOW

NUMBER OF TIMES THE METHODS WE DONT USE CASH

were

we

at a restaurant, and pay by a

credit or debit card;
send a demand draft to our
brother;

we
We

receive a cheque;

make an online payment via direct

In all these non-cash situations, a unique

payment systems come into the picture,
processing in India alone over two
billion transactions a year. A safe and
efficient payment mechanism is the
backbone of a properly functioning
financial system.

PAYMENTS CAN BE CLASSIFIED INTO FOLLOWING

CATEGORIES, DEPENDING ON HOW THE PAYMENT
INSTRUCTION IS GIVEN BY THE PAYER:

Paper-based

payments : Cheques &

Demand Drafts
Card-based

Payments :

Debit and

Credit Cards
Electronic

Payments : ECS, NEFT, RTGS

PAPER BASED
PAYMENTS

Cheque:
A cheque is a payment instrument in a
specified format, using which; the payer
instructs his bank to allow a debit from his
account. It is drawn on a specified banker (i.e.,
it cannot be drawn on any bank). A cheque is an
order to pay, written by a Drawer. The Drawer
will send it to the Payee, who will deposit it into
his bank the Presenting Bank.
The Presenting Bank presents the cheque

 Demand

draft

A Demand Draft, also called a D.D,

is seen as a less risky payment
method as it is payable by the
paying bank itself. there is no
practical risk of it bouncing.

CARD BASED PAYMENTS

In Electronic Payments, the instruction to pay

is created electronically, unlike in a cheque
where the instruction to pay is in a specific
paper format while I have categorized card
based payments separately from electronic
payments, they are sometimes clubbed.
Though a card made of plastic, the
payment instruction is electronic.
When you swipe your card and key in your

ELECTRONIC PAYMENTS

In Electronic Payments, there is no

physical payment instrument. The
instructions are purely electronic.
Different Electronic payment
method are :1.

ECS (Electronic Clearing Service)

2.

NEFT (National Electronic Fund

ECS (ELECTRONIC CLEARING

SERVICE)
The Electronic Clearing Service clears and settles
mainly bulk, repeated electronic payments.

NEFT (NATIONAL ELECTRONIC FUND

TRANSFER)

It is useful for one time

electronic payment.

RTGS (REAL TIME GROSS

SETTLEMENT)
Its uses after Rs. 2 Lakh

THAN
K