How can the efficiency of the payment systems in India improved ?

I believe, the efficiency of the payment system can be improved if there is more and more clearing centres. So, there should be implementation of Image Based Cheque Truncation Clearing at major centres ( New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad) which would in due course lead to National Cheque Truncation System ( National CTS). By setting up new Clearing Houses, expansion of geographical jurisdiction of the Clearing Houses, merger and amalgamation Clearing Houses, etc. to other cities and inter cities can avoid the delay of Clearing cheques, making payments and importantly rationalise the operations of clearing houses.

I think, by enhancing the efficiency of Systemically Important Payment systems like increasing the usage of RTGS system and following the MICR standards in every cheques issued will be helpful.

even a street vegetable vendor and a rickshaw puller are having mobile these days. stop all physical bank movements and wasting public's time. promote only e-payments and m-payments that will definitely make life easier for public. and the lethargic nationalized bank employees will get more time to yawn, chat and sleep on their seats.

Payments are nothing but trasfer of value from one person to another, it can be faster even more than that of light. Scientifically light is faster as per Einsteen's theory, as per latest communiction techniques value transfer is faster than light. Using modern techniques value/money can be transfred from India to USA within seconds if both the parties have their respective bank accounts and net banking system, these are subject to FEMA.

If a person makes his intention to pay, how faster you pay or make arrangement to pay is the efficiency in payment system. For this kind of value transfer there should be an intermidiary unless it passess through currency. Normally intermidiaries are banks or financial institutions recognised for this purpose. Which intermidiary makes trasfer faster is the efficiency in payment system. Do such possible arrangements using modern techniques as much as possible to be ost effective payment system.

In my view, if there is encouragement, facilitation and removal of impediments for the introduction of innovative products and services for banks, customers and Government, it could improve its efficiency.