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International transaction have to effect payment from one party
to another party. There are various ways to effects this
payments. Payment may be gifts or remittances; it could be
export import or trade transaction. Trade of merchandise as
well as services is to be considered.
Buyer Seller
A B
ð S system is a funds transfer mechanism
where transfer of money takes place from one
bank to another on a ³real time´ & on ³gross´
basis
astest possible money transfer system through
the banking Channel
oney transfer takes place in the books of the
ðeserve Bank of India, payment is taken as final &
Irrevocable
No Credit & Liquidity ðisks
Seamless movement of funds through I platform
ðeduces the systematic risks in the settlement
system
unds are received online
Immediate use of funds by both the parties without
exposing them to settlement risk
Clearing House Interbank Payment System
(CHIPS)
Society or Worldwide Interbank inancial
elecommunications (SWI )
OWIð
CHAPS
There are the different types of risk in payment systems
depend on their stage of development.
Our main interest behind this project is to give a detail
information about international payment systems along
with risk.
However the recognition of payment system risk has
been universal.